Chapter: Gist of Press Information Bureau Articles

Topic: PSES - Performance Overview

Q. What were the reasons behind set up Public Sector Enterprises?

Public sector enterprises have been set up to serve the broad macro-economic objectives of higher economic growth, self-sufficiency in production of goods and services, long term equilibrium in balance of payments and low and stable prices.

Q. What is the growth record of CPSEs?

While there were only five Central Public Sector Enterprises (CPSEs) with a total investment of Rs. 29.00 crore at the time of the First Five Year Plan, there were as many 248 CPSEs (excluding 7 Insurance Companies) with a total investment of Rs. 6, 66,848 crore as on 31st March, 2011.

Q. What is aggregate profit and loss of CPSEs?

• The profit of profit making CPSEs stood at Rs. 1, 13,770 crore in 2010-11 compared to Rs. 1, 08,434 crore in 2009-10. The loss of loss making CPSEs, on the other hand, was Rs. 21,693 crore in 2010-11 compared to Rs. 16,231 crore in 2009-10. At the aggregate level, the net profit of all CPSEs (aggregate net profit- aggregate net loss) stood at Rs. 92,077 crore in 2010-11 compared to Rs. 92,203 crore during 2009-10.

• Cognate group-wise, the best results were achieved by the ‘mining’ sector with 22.32 per cent growth in profit over the previous year. This was followed by 12.97 per cent growth in profits achieved by electricity sector. The ‘services’ sector suffered a loss of Rs. 7,639 crore during 2010-11, which was higher than the loss of Rs. 3,279 crore in 2009-10.

Q. Which are the top ten profit making CPSEs?

Oil & Natural Gas Corporation Ltd., NTPC Ltd., and Indian Oil Corporation Ltd have ranked first, second and third CPSEs respectively amongst the top ten profit making CPSEs. They are followed by NMDC Ltd., Bharat Heavy Electricals Ltd., Steel Authority of India Ltd., Coal India Ltd., GAIL (India) Ltd., Oil India Ltd. and Power Grid Corporation of India Ltd. All the top ten profit making companies are, more or less same in 2010-11 as in 2009-10 (with ranking slightly changed) except for Power Grid Corporation that has replaced the Power Finance Corporation.

Q. Which are the top ten loss making CPSEs?

Amongst the loss making companies, Air India Ltd., Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. were the top three loss making enterprises during 2010-11. They are followed by Hindustan Photo Films Manufacturing Co. Ltd., Indian Drugs & Pharmaceuticals Ltd., Hindustan Cables Ltd., Fertilizer Corporation of India Ltd., Air India Charters Ltd., Hindustan Fertilizer Corporation Ltd. and ITI Ltd.

Contribution to GDP Gross Value Addition by CPSEs

The share of ‘gross value addition’ in CPSEs (net value addition + depreciation) in Gross Domestic Product (at current market price) stood at 5.96 per cent in 2010-11 against a share of6.44 per cent in 2009-10. If however, the under-recoveries of oil marketing companies (amounting to Rs. 37,190 crore in 2010-11 and Rs. 29,951 crore in 2009-10) are included, then the share of all CPSEs in GDP goes up to 6.45 per cent in 2010-11 and 6.75 per cent in 2009-10.

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