CPSEs Thriving Under Modi Government, Says Sitharaman
Finance Minister Nirmala Sitharaman refuted claims by Congress leader Rahul Gandhi that central public sector enterprises (CPSEs) are being dismantled and are in disarray. She highlighted that the net worth of CPSEs increased by 82% to Rs 17.33 trillion at the end of FY23 compared to Rs 9.5 trillion in FY14.
Sitharaman attributed this growth to the leadership of Prime Minister Narendra Modi, who instilled a culture of professionalism and increased operational freedom in PSUs. The government's focus on capital expenditure also contributed to their stock performance.
The market capitalization of 12 listed public sector banks (PSBs) surged 2.95 times in the past three years to touch Rs 16.12 trillion as of March 31, 2024. This recovery from the banking crisis of the UPA era is attributed to the Modi government's initiatives. Gross non-performing assets in PSBs have declined to a decade-low of 3.2%, while profits have reached record highs.
Sitharaman emphasized the government's commitment to financial inclusion and ensuring access to formal banking services across the nation.
CPSEs, including previously neglected entities like Hindustan Aeronautics Limited (HAL), have experienced a resurgence under the Modi government. HAL's market valuation has skyrocketed by 1,370% in just four years, rising from Rs 17,398 crore in 2020 to Rs 2.5 lakh crore as of May 7, 2024. HAL also announced its highest-ever revenue of over Rs 29,810 crore for FY 2023-24 and has a robust order book of over Rs 94,000 crore.
Sitharaman criticized the Congress for relying heavily on imports rather than empowering institutions like HAL.
She also addressed claims of job losses due to disinvestment. Citing the example of Air India, Sitharaman said the airline has seen significant growth in employment opportunities, with over 7,500 employees joining the company since privatization. The government ensured no employee removal or retrenchment for one year after privatization, followed by a voluntary retirement offer with maximum benefits. PFs and gratuity benefits were also offered as per laws.