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

Not just politics, let`s discuss policies too

Why public policy matters Most days, India`s loudest debates stop at the ballot box. We can name every major leader and recall every campaign slogan. Still, far fewer of us can explain why a widow`s pension is delayed or how a government school`s budget is actually approved. That

When algorithms decide and children die

The images have not left me, of dead and wounded children being carried in the arms of the medics and relatives to the ambulances and hospitals. On February 28, at the start of Operation Epic Fury, cruise missiles struck the Shajareh Tayyebeh school – officially named a girls’ school, in Minab,

The economics of representation: Why women in power matter

India’s democracy has grown in scale, but not quite in balance. Women today are active participants in elections, influencing outcomes in ways that were not as visible earlier. Yet their presence in legislative institutions continues to lag behind. The Nari Shakti Vandan Adhiniyam was meant to addres

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said. He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi