NEW DELHI: Dismissing the Opposition’s claims that public sector enterprises were in disarray, Finance Minister Nirmala Sitharaman on Wednesday said that the current dispensation’s efforts to revive these units have paid dividend.
She highlighted that there was an 87% growth in their combined net profit from Rs 1.29 lakh crore in 2013-14 to Rs 2.41 lakh crore in 2022-23.
She added that the adverse conditions faced by PSUs during the Congress-led UPA government, contrasting it with the current scenario where neglected entities like Hindustan Aeronautics Limited (HAL) have witnessed a remarkable turnaround.
“Under the leadership of PM @narendramodi, PSUs are thriving, benefiting significantly from the culture of professionalism infused in them along with increased operational freedom. Modi Govt’s focus on capital expenditure has also led to substantial growth in their stock performance,” Sitharaman wrote on X.
As per Sitharaman, the strategic alignment of management incentives, implementation of Capital Management Guidelines, and a calibrated disinvestment strategy have significantly enhanced the performance of Central Public Sector Enterprises (CPSEs) under the Modi government, thereby boosting investor confidence.
Moreover, the government’s focus on infrastructure development in sectors like railways, roads, power, metals, construction, and heavy equipment manufacturing has directly benefited PSUs, fostering growth and sustainability.
“Modi govt’s initiatives have helped the public sector banks (PSBs) to recover from the banking crisis created by the UPA. GNPAs in PSBs have fallen to decadal lows of 3.2% and profits are at record highs, even as the push to financial inclusion brings formal banking to every corner of the country,” Sitharaman said on X. She said PSUs under the Modi-Government have showcased remarkable growth.