In a submit on X (previously Twitter), Sitharaman has mentioned that the collective market capitalization of the 81 publicly traded PSUs has skilled a outstanding 225% growth below the Modi authorities.Additionally, the Nifty CPSE index has delivered a formidable 79% return, considerably outperforming each the Nifty 500 and Nifty 50 indices.
Sitharaman’s submit was a response to allegations made by the Indian National Congress (INC) and its chief Rahul Gandhi, who claimed that PSUs have been being dismantled and have been in disarray below the Modi authorities. The Finance Minister referred to those claims as a major instance of “Ulta Chor Kotwal Ko Daante,” suggesting that the information paint a unique image.
According to the info supplied by Sitharaman, 62 CPSEs, 12 PSBs, 3 public sector insurance coverage firms, and IDBI Bank have witnessed a considerable 225% enhance in their market capitalization. Furthermore, the NIFTY CPSE index has outperformed each the NIFTY 500 and NIFTY 50 indices, which have yielded returns of 27.4% and 22.5%, respectively.
Here are the 10 factors FM Nirmala Sitharaman listed to counter Rahul Gandhi and INC’s expenses:
- Total Paid-up Capital of all CPSEs was Rs 5.05 lakh crore as of March 31, 2023, v/s Rs 1.98 lakh crores in FY 14, a rise of 155%.
- Total Gross Revenue from the operations of CPSEs throughout FY 2023 was Rs 37.90 lakh crore v/s Rs 20.61 lakh crore in FY 14, a rise of 84%.
- Net Profit of profit-making CPSEs stood at Rs 2.41 lakh crore in FY 2023 v/s Rs 1.29 lakh crore in FY14, a rise of 87%.
- 4. Contribution of all CPSEs to the Exchequer by the use of Excise & Customs duties, GST, Corporate tax, Dividends, and many others. stood at Rsv4.58 lakh crore in FY 2023 v/s Rs 2.20 lakh crore in FY14, a rise of 108%.
- Net Worth of all CPSEs elevated from Rs 9.5 lakh crore as of March 31, 2014, to Rs 17.33 lakh crore as of FY-2023, a rise of 82%.
- Capital Employed by all CPSEs was Rs 38.16 lakh crore as of March 31, 2023, towards Rs 17.44 lakh crore as of March 31, 2014, a growth of 119%.
- Total market cap of all 81 listed PSUs (62 CPSEs, 12 PSBs, 3 Public Sector Insurance Companies and IDBI Bank) has grown by 225%.
- Returns by NIFTY CPSE of practically 78.8% have considerably outpaced NIFTY 500 (27.4%) and NIFTY 50 (22.5%)
- Market Cap of 12 listed Public Sector Banks (PSBs) has elevated 2.95 occasions (195%) from Rs. 5.45 lakh crore (as of 31.3.21) to Rs. 16.12 lakh crore (as of 31.3.24).
- Notably, 15 CPSEs have skilled a formidable CAGR starting from 76% to 100%, reflecting substantial worth appreciation and investor confidence. Additionally, 25 CPSEs have demonstrated sturdy growth with CAGR ranging between 51% to 75%, whereas 28 CPSEs have proven regular growth throughout the vary of 26% to 50%.
Sitharaman mentioned that PSUs had suffered below the earlier Congress-led UPA authorities and have been uncared for. However, below the Modi authorities, firms like Hindustan Aeronautics Limited (HAL) have skilled a resurgence, delivering multibagger returns of a formidable 1,000% over the past 5 years, she claimed.
Sitharaman attributed the success of PSUs to the “culture of professionalism infused in them along with increased operational freedom” below the Modi authorities. She additionally highlighted the federal government’s focus on capital expenditure, which has immediately benefited PSUs in numerous sectors corresponding to railways, roads, energy, metals, building, and heavy tools manufacturing.
Addressing Rahul Gandhi’s criticism of HAL, the Finance Minister acknowledged that opposite to his claims, HAL’s market valuation has skyrocketed by 1370% in simply 4 years, growing from Rs 17,398 crore in 2020 to Rs 2.5 lakh crore as of May 7, 2024.
Moreover, HAL introduced its highest-ever income of greater than Rs 29,810 crore for FY 2023-24 and boasts a strong order e-book exceeding Rs 94,000 crore. Sitharaman argued that these figures point out a strengthening establishment somewhat than a weakening one.
