Profits of PSUs fell in 2015 -Governance Now

Profits of PSUs fell in 2015

Except power generation, PSUs in other sectors reported a fall in profits or a rise in losses during 2014-15 compared with the previous year

GN Bureau | October 22, 2016

#PSUs #fall in profit #rise in losses

For the first time in five years, the profits of India’s state-owned companies dropped, by about 20 percent in 2015. According to the government data 77 public-sector undertakings (PSUs) reported losses and contribution to the exchequer dropped Rs 20,000 crore over the previous year.

The drop in profits – from Rs 1.28 lakh crore to Rs 1.03 lakh crore – over 2013-'14 comes in the backdrop of prime minister Narendra Modi’s 2016 Independence-day declaration that a “new culture” had helped Air India and telecom company Bharat Sachar Nigam Limited improve performance.

As many as 235 PSUs surveyed by the ministry of heavy industries and public enterprises have seen drop in profits in a year that India’s economy grew 7.3 percent over 4.7 percent in 2013-14.

Except power generation, PSUs in other sectors reported a fall in profits or a rise in losses during 2014-15 compared with the previous year.

Contribution to the exchequer

The government’s companies contributed Rs 20,000 crore less to the public exchequer in 2014-15 than they did the previous year, when they generated Rs 2.2 lakh crore. Even the top profit-making PSUs – companies such as ONGC, Coal India Ltd, Indian Oil and NTPC – saw a 13 percent dip in profits.

A leading reason for the decline in profits was the global slowdown and weakening of international oil prices, leading to a 29 percent fall in export earnings and affecting manufacturing companies.

Comments

Other News

New Delhi’s Indo-Pacific strategy enters a new phase

India appears to be investing fresh dynamism in its Indo-Pacific strategy. At the time when the US, under president Donald Trump, has adopted a conciliatory approach towards China and has changed the name of America’s Indo-Pacific Command to just Pacific Command, India has quietly moved towards con

CAG flags major fiscal lapses in Maharashtra

Maharashtra`s fiscal management has come under sharp scrutiny after the Comptroller and Auditor General (CAG) of India, in its State Finances Audit Report for 2024-25, flagged significant budgetary inefficiencies, accounting irregularities, understatement of key fiscal indicators and widespread governanc

The health sector research we are not doing

Some neglect is loud. This kind is quiet. It sits in research never commissioned, data never collected, questions never asked. In South Asia, that quiet has let the region’s worst health problems stay understudied, underfunded, and out of sight of those who could act.

Study flags accessibility and last-mile challenges on Mumbai Metro Aqua Line

Mumbai Metro Line 3 (Aqua Line), the city`s first fully underground metro corridor and one of its largest public transport investments, represents a major engineering achievement and has been widely welcomed by commuters. However, the overall commuter experience continues to be constrained by accessibili

Centre intensifies preparedness as El Niño threat looms

Amid uncertainty in the southwest monsoon due to the potential impact of El Niño, the government is addressing the situation with comprehensive preparedness, a clear strategy, and strong ground-level action. While challenges remain, the entire system has been activated in advance and is working proa

India is crossing a climate threshold

On June 28, Delhi recorded a maximum temperature of 41.3°C, four degrees above the seasonal normal. But the “feels like” temperature, which factors in humidity, showed more than 51°C. What the body experienced was very different from what the thermometer recorded. India`