Amalgamating the collective market capitalization of 81 publicly listed Public Sector Undertakings (PSUs), encompassing banks and insurance entities, has burgeoned by a substantial 225% within the preceding triennium. This upsurge finds sustenance in the government’s augmented capital disbursements, enhanced capital administration, and heightened professionalism, as articulated by the finance minister, Nirmala Sitharaman, on the midweek.
In a rebutting discourse directed towards the Congress and Rahul Gandhi’s asseveration regarding the purported “dismantlement” and disorderliness plaguing PSUs under the aegis of the Modi administration, Sitharaman elucidated on ‘X’ that the factual landscape paints a markedly divergent narrative.
Highlighting the plight of PSUs during the tenure of the Congress-led UPA government, entities such as Hindustan Aeronautics Limited (HAL) endured neglect and stagnation. However, under the stewardship of the Modi government, a renaissance has transpired, as asserted by Sitharaman.
“HAL’s market capitalization has surged by an astronomical 1370% in a mere span of 4 years, catapulting from ₹17,398 crore in 2020 to a staggering ₹2.5 lakh crore as of May 7, 2024. The denouement of HAL’s fiscal year 2024 unveiled a zenith in revenue, surpassing the unprecedented threshold of Rs 29,810 crore, further underscored by an enviable order book surplus exceeding Rs 94,000 crore. These metrics scarcely intimate at an enfeebled establishment but rather an entity undergoing a formidable fortification,” Sitharaman articulated. “In contradistinction to @RahulGandhi’s assertions, it was the Congress party that bequeathed India with a state of debilitation, tethering heavily on imports instead of empowering indigenous entities such as HAL.”
The cumulative market capitalization of all 81 listed PSUs (comprising 62 CPSEs, 12 PSBs, 3 Public Sector Insurance Companies, and IDBI Bank) has swelled by an impressive 225%, as delineated by Sitharaman.
The Nifty CPSE has yielded returns approaching 78.8%, markedly eclipsing the NIFTY 500 (27.4%) and NIFTY 50 (22.5%). The market capitalization of the 12 listed PSBs has burgeoned 2.95-fold (195%) from Rs 5.45 trillion as of March 31, 2021, to Rs 16.12 trillion as of March 31, 2024.
Of particular note, 15 CPSEs have registered an impressive compound annual growth rate (CAGR) ranging between 76% to 100%, emblematic of substantial value accretion and investor confidence. Concurrently, 25 CPSEs have evinced robust expansion with CAGR oscillating between 51% to 75%, while 28 CPSEs have demonstrated steadfast augmentation within the bracket of 26% to 50%.
Echoing the sentiments, the minister expounded on how initiatives promulgated by the Modi government have facilitated the convalescence of PSBs from the banking imbroglio precipitated by the UPA. Non-performing assets (NPAs) in PSBs have dwindled to the lowest levels in a decade at 3.2%, whilst profits have soared to unprecedented pinnacles, buoyed by the impetus towards financial inclusivity, which has engendered ubiquitous formal banking services across the nation.
Furthermore, Sitharaman refuted fallacious claims regarding employment attrition subsequent to privatization endeavors. Post-privatization, Air India has witnessed a discernible uptick in employment opportunities, with over 7500 new recruits (comprising both aviation and ground personnel) enlisting in the company’s ranks, as underscored by Sitharaman.
