MAKING A DIFFERENCE
Standing out amidst the pandemic and economic chaos CPSEs show the way
To begin with, in the 1950s, the challenges were many for central public sector enterprises. However, over the years, they have contributed immensely to the economic growth of the country. Along with it, the yeoman work done by CPSE through the CSR activities is a silent service in supplementing the government’s efforts to uplift the marginalized people of society.
Central Public Sector Enterprises (CPSEs) play a significant role in fulfilling the developmental priorities of the country. They contribute to macroeconomic objectives such as growth, advancement in manufacturing and technology and price stabilization, as well as to fulfil socio-economic objectives such as employment generation and skill development.
CPSEs function under the control of administrative ministries. The decisions relating to investments in the CPSEs are taken by the concerned administrative ministries with the approval of competent authority considering techno-economic feasibility. The Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprises, Government of India brings out the Public Sector Enterprises Survey on the performance of Central Public Sector Enterprises (CPSEs) every year. According to the Public Enterprises Survey -2018-19 tabled in both the Houses of Parliament on February 10, 2020, there were total 348 CPSEs as on March 31, 2019, out of which 249 were operational. Remaining 86 CPSEs were under construction, and 13 CPSEs were under closure or liquidation.
“Public Sector has emerged as an instrument of all-inclusive development of the country’s economy… In the wake of ongoing COVID-19 pandemic, Public Sector Enterprises (PSEs) remained at the forefront to supplement the efforts of the government and its agencies to contain the spread of this deadly virus,” wrote Atul Sobti Director General, SCOPE in its monthly magazine. SCOPE salutes the slew of measures taken to address all strata and on its part SCOPE employees have made a humble contribution of their one day’s salary to PM CARES Fund.
“Mr. Sailesh, Secretary, Department of Public Enterprises (DPE) had commended the efforts of PSEs in the socio-economic development of the country as well as their contribution in supplementing the Government efforts to contain COVID 19 outbreak,” Mr. Sobti added. According to a government statement the, total Paid-up Capital in all CPSES as on 31.3.2019 Stood at Rs.2,75,697 crore Registering a Growth of 8.55%. Financial Investment in all CPSES Stood at Rs.16,40,628 crore Recording a Growth of 14.65%. Further, the overall net profit of operating CPSEs during 2018-19 stood at Rs.1,42,951 crore as compared to Rs.1,23,751 crore during 2017-18 showing a growth in overall profit of 15.52%. Reserves & Surplus of CPSEs stood at Rs.9,93,328 crore as on 31.03.2019 as compared to Rs.9,26,906 crore as on 31.03.2018, showing an increase of 7.17%. The net worth of all CPSEs went from Rs.11,15,552 crore as on 31.03.2018 to Rs.12,08,758 crore as on 31.03.2019 showing an increase of 8.36 %.
Contribution of CPSEs to Central Exchequer by way of excise duty, customs duty, GST, corporate tax, interest on Central Government loans, dividend and other duties and taxes stood at Rs.3,68,803 crore in 2018-19 as against Rs.3,52,361 crore in 2017-18, showing an increase of 4.67%. Foreign exchange earnings of 79 CPSEs through exports of goods and services stood at Rs.1,43,377 crore in 2018-19 against Rs.98,714 crore in 2017- 18, showing an increase of 45.24%. SCOPE in its latest report highlighted that PSEs are proving their metal across sectors and featuring amongst the top companies of the world. This is apparent from the fact that out of 6 Indian companies featuring in the prestigious Global Fortune 500 list for the year 2020, 3 are CPSEs and out of total 57 Indian companies featuring in Forbes 2000 – World’s Biggest Public Companies for the year 2019, 10 are PSEs. Sobti in the latest issue of SCOPE magazine states, “The need of the hour is to constantly empower and build trust in the PSEs so that they are able to demonstrate global competitiveness and market leadership. The PSEs have and always will be the veritable cornerstones of the Indian economy and will continue to canvass India’s growth story.”