Narendra Modi govt increases investments in PSUs

Narendra Modi government will ask profit making public sector units to buy the land and assets of perennially loss making central public sector units (CPSU).  The decision to prioritize PSUs over private companies is seen as a safe route to monetise the assets without inviting criticism of selling off family silver. "As of now, that is our decision", Union Minister of Heavy Industry & Public Enterprises Anant G. Geete said.

Addressing a press conference to announce the two years' achievements of his ministry in New Delhi on Wednesday, Geete said that the decision to sell of the loss making PSUs will be taken by the respective administrative ministries.

Acknowledging the receipt of the recommendations on the Niti Aayog on loss making PSUs, the minister said that the matter will have to be scrutinized by the government and respective ministries before accepting it. Niti Aayog had suggested seven categories of revival, restricting and asset monetisation plans for loss making PSUs.

Modi government has been enhancing the investments in CPSUs to turnaround the loss making companies that have growth potential. The government is also looking at increasing the performance of profit making entities.

Geete said that the total investment of Rs 10,96,057 crore  in all CPSUs in 2014-15  was 10.48 percent higher than the previous year. The reserves and surplus of CPSUs have gone up from Rs 7,46,994 crore in 2013-14 to 7,71,672 crore in 2014-15, the minister pointed out. The networth of CPSUs increased 4.12 percent to touch Rs 9,84,692 crore in 2014-15, he noted.
The Minister said apart from growth registered by CPSUs, his ministry has also succeeded in putting to optimal use the assets of its loss making CPSUs. "For the first time we have managed to close down six companies without any protests from the employees", he said. Over 4000 employees were given golden handshake following the closure of five CPSUs - TSPL, HMT Bearings, HMT Watches, HMT Chinar Watches and Hindustan Cables Limited - that functioned under the ministry in the last two years.