India’s central public sector enterprises logged 57 per cent growth in gross revenue and 27.5 per cent growth in net profit between 2020-21 and 2022-23 and an exponential growth in procurement in Government e-Marketplace from Rs 7,035 crore in 2020-21 to Rs 133,720 crore in 2023-24 (upto November 2023), according to the Department of Public Enterprises.
The presentation on progress made by CPSEs came at a meeting of the consultative committee attached to Ministry of Finance on ‘Performance of Public Enterprises’ chaired by Finance Minister Nirmala Sitharaman on Thursday. Lauding the 34.63 per cent increase in CPSEs’ procurement from MSMEs in FY2023-24 as against the mandated 25 per cent, the Finance Minister also noted the progress of CPSEs with respect to various parameters which were discussed.
The meeting was also attended by Ministers of State for Finance Pankaj Chaudhary and Bhagwat Karad, Members of Parliament from Lok Sabha and Rajya Sabha, Secretary, Department of Public Enterprises and other senior officials of the Finance Ministry.
A review of the Finance Ministry’s performance and achievements notes that capital expenditure targets by CPSEs are on track with 51.71 per cent of target achieved till September 2023. The Department of Investment and Public Asset Management (DIPAM) has played a key role in empowering CPSEs by prioritising value creation in these entities and has enabled asset creation through trust for investors.
The Government is also continuing divestment in CPSEs via the ‘offer for sale’ route and has realised over Rs 9,810 crore since January 2023 through the process. Since January 2023, OFS transactions were carried out in HAL, Coal India, RVNL, SJVN and HUDCO, with the Government realising Rs 10,860.91 crore through these transactions.
Moreover, with the framing of consistent dividend policy for CPSE’s, dividends payouts have increased over the last 3-4 years. The advisory on consistent dividend policy was issued in November 2020 by DIPAM. During the current financial year, the Government has realised Rs 26, 644 crores as dividend receipts from CPSEs as on 4 December 2023.
