Amid Govt’s Disinvestment Spree, PSEs Record Better Performances

New Delhi: The total income of Central Public Sector Enterprises (CPSEs) increased by 20.12% during 2018-19 to Rs 24,40,748 crore from to Rs 20,32,001 crore in 2017-18, according to the Public Enterprises Survey 2018-19, which was tabled in Parliament on February 10.

At a time when unemployment is rising and the central government is in a hurry for divestment, this growth is significant as it indicates the capacity and performance of public enterprises that are considered as model employers.

As per the survey, the total paid-up capital in all CPSEs stood at Rs 2,75,697 crore as on March-end 2019 compared with Rs 2,53,977 crore during the same time previous year, showing a growth of 8.55%. The total financial investment in all CPSEs increased by 14.65% during 2018-19, which amounted to Rs 16,40,628 crore, compared with Rs 14,31,008 crore during 2017-18.

However, the total short- and long-term loans of CPSEs have been on the rise in the past years. While the short- and long-term debts were recorded at Rs 11,00,459 crore in 2014-15, the figure grew to Rs 17,20,587 crore in 2018-19, showing a rise by 56.35%.

As per the Ministry of Heavy Industries and Public Enterprises, there were a total 348 CPSEs at the end of March 2019 out of which 249 were operational. The remaining 86 CPSEs were under construction and 13 CPSEs were under closure or liquidation.

Notably, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation and NTPC were top three profitable public sector units in 2018-19. They recorded 15.3%, 9.68% and 6.73%, respectively. Despite their better performance, the Central government has, on numerous instances, dumped its plans of privatising these profit-making units among others.

“The overall net profit of operating CPSEs during 2018-19 stood at Rs 1,42,951crore as compared with Rs 1,23,751crore during 2017-18, showing a growth in overall profit of 15.52 per cent,” stated the survey.

Among the loss-making units are BSNL, Air India, MTNL, State Trading Corporation of India, MSTC and Chennai Petroleum Corporation, as per the survey.

The capital employed also increased by 11.7% to Rs 26.33 lakh crore in 2018-19, compared with Rs 23.57 lakh crore in 2017-18. The figures were Rs 19,68,311 crore in 2015-16 and Rs 18,66,944 crore in 2014-15. Capital employed includes paid-up capital plus reserve and surplus and long-term loans.