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

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims. There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

The Sardar biography that throws light on our times

Patel: A Life By Rajmohan Gandhi Aleph Books, 568 pages, Rs 1,199 There are many biographi

Climate change, El Niño rewrite Indian monsoon

The month of July exceeded its rainfall target despite forecasts of a below-normal month under a strengthening El Niño. The reason could be that climate change is amplifying monsoon complexity: West Pacific warming, Western Disturbances and evolving ocean conditions increasingly interact with El Ni&

Mumbai has just 1.28 sq.m. of open space per person: Study

Mumbai`s public space crisis is as much about mismanagement as it is about scarcity, and offers a governance roadmap that can be implemented without new legislation, according to a new report by the Urban Design Research Institute (UDRI) and the NGO Alliance for Governance and Renewal (NAGAR).

Lok Sabha passes amendment bill to improve public examination system

The Lok Sabha on Wednesday passed the Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026 by a voice vote after an extensive discussion. Replying to the debate, minister of state (independent charge) for science & technology; earth sciences and MoS in the PMO, Dr. Jite