Repeated claims from the @INCIndia ecosystem and @RahulGandhi in particular that Public Sector Undertakings (PSUs) are being dismantled & are in disarray under the current government are a textbook example of 'Ulta Chor Kotwal Ko Daante,' as the facts reveal a very different picture.
PSUs have suffered under the Congress-led UPA Govt. PSUs that were previously neglected under the UPA Govt, such as Hindustan Aeronautics Limited (HAL), have seen a resurgence under the Modi Govt.
Under the leadership of PM @narendramodi, PSUs are thriving, benefiting significantly from the culture of professionalism infused in them along with increased operational freedom.
Modi Govt's focus on capital expenditure has also led to substantial growth in their stock performance.
The greater alignment of management incentives (through the sharpening of performance-linked incentives), Capital Management Guidelines on dividends, buybacks, etc. and the calibration of the disinvestment strategy have helped improve the performance of the CPSEs and reposed investor confidence.
The focus on infrastructure development, power, logistics, etc. has directly benefited PSUs in railways, roads, power, metals, construction, heavy equipment manufacture, etc.
Modi Govt's initiatives have helped the Public sector banks (PSBs) to recover from the banking crisis created by the UPA. GNPAs in PSBs have fallen to decadal lows of 3.2% and profits are at record highs, even as the push to financial inclusion brings formal banking to every corner of the country.
The transformation in PSUs under the Modi Govt is evident from a comparison of parameters between FY 2022-23 and FY 2013-14:
a. Total Paid-up Capital of all CPSEs was ₹5.05 lakh crore as of March 31, 2023, v/s ₹1.98 lakh crs in FY 14, an increase of 155%.
b. Total Gross Revenue from the operations of CPSEs during FY 2023 was ₹37.90 lakh crore v/s ₹20.61 lakh crore in FY 14, an increase of 84%.
c. Net Profit of profit-making CPSEs stood at ₹2.41 lakh crore in FY 2023 v/s ₹1.29 lakh crore in FY14, an increase of 87%.
d. Contribution of all CPSEs to the Exchequer by way of Excise & Customs duties, GST, Corporate tax, Dividends, etc. stood at ₹4.58 lakh crore in FY 2023 v/s ₹2.20 lakh crore in FY14, an increase of 108%.
e. Net Worth of all CPSEs increased from ₹9.5 lakh crore as of March 31, 2014, to ₹17.33 lakh crore as of FY-2023, an increase of 82%.
f. Capital Employed by all CPSEs was ₹38.16 lakh crore as of March 31, 2023, against ₹17.44 lakh crore as of March 31, 2014, a growth of 119%.
Due to better management of PSUs, their share prices have tremendously increased in last 3 years.
a. Total market cap of all 81 listed PSUs (62 CPSEs, 12 PSBs, 3 Public Sector Insurance Companies and IDBI Bank) has grown by 225%.
b. Returns by NIFTY CPSE of nearly 78.8% have significantly outpaced NIFTY 500 (27.4%) and NIFTY 50 (22.5%)
c. Market Cap of 12 listed Public Sector Banks (PSBs) has increased 2.95 times (195%) from Rs. 5.45 lakh crore (as of 31.3.21) to Rs. 16.12 lakh crore (as of 31.3.24).
d. Notably, 15 CPSEs have experienced an impressive CAGR ranging from 76% to 100%, reflecting substantial value appreciation and investor confidence. Additionally, 25 CPSEs have demonstrated strong growth with CAGR ranging between 51% to 75%, while 28 CPSEs have shown steady expansion within the range of 26% to 50%.
In fact, even under former PM Atal Ji led NDA Govt, shares of PSUs had performed better compared to UPA, due to better management.
- During 1999-2004 (NDA): PSU index soared over 300%, vastly outperforming the BSE Sensex's 70% gain.
- During 2004-09 (UPA I): The PSU index rose by 60%, but this was only half the growth rate of the Sensex.
- During 2009-14 (UPA II): The PSU index declined by 6%, while the benchmark surged by 73%.
(1/2)
PSUs have suffered under the Congress-led UPA Govt. PSUs that were previously neglected under the UPA Govt, such as Hindustan Aeronautics Limited (HAL), have seen a resurgence under the Modi Govt.
Under the leadership of PM @narendramodi, PSUs are thriving, benefiting significantly from the culture of professionalism infused in them along with increased operational freedom.
Modi Govt's focus on capital expenditure has also led to substantial growth in their stock performance.
The greater alignment of management incentives (through the sharpening of performance-linked incentives), Capital Management Guidelines on dividends, buybacks, etc. and the calibration of the disinvestment strategy have helped improve the performance of the CPSEs and reposed investor confidence.
The focus on infrastructure development, power, logistics, etc. has directly benefited PSUs in railways, roads, power, metals, construction, heavy equipment manufacture, etc.
Modi Govt's initiatives have helped the Public sector banks (PSBs) to recover from the banking crisis created by the UPA. GNPAs in PSBs have fallen to decadal lows of 3.2% and profits are at record highs, even as the push to financial inclusion brings formal banking to every corner of the country.
The transformation in PSUs under the Modi Govt is evident from a comparison of parameters between FY 2022-23 and FY 2013-14:
a. Total Paid-up Capital of all CPSEs was ₹5.05 lakh crore as of March 31, 2023, v/s ₹1.98 lakh crs in FY 14, an increase of 155%.
b. Total Gross Revenue from the operations of CPSEs during FY 2023 was ₹37.90 lakh crore v/s ₹20.61 lakh crore in FY 14, an increase of 84%.
c. Net Profit of profit-making CPSEs stood at ₹2.41 lakh crore in FY 2023 v/s ₹1.29 lakh crore in FY14, an increase of 87%.
d. Contribution of all CPSEs to the Exchequer by way of Excise & Customs duties, GST, Corporate tax, Dividends, etc. stood at ₹4.58 lakh crore in FY 2023 v/s ₹2.20 lakh crore in FY14, an increase of 108%.
e. Net Worth of all CPSEs increased from ₹9.5 lakh crore as of March 31, 2014, to ₹17.33 lakh crore as of FY-2023, an increase of 82%.
f. Capital Employed by all CPSEs was ₹38.16 lakh crore as of March 31, 2023, against ₹17.44 lakh crore as of March 31, 2014, a growth of 119%.
Due to better management of PSUs, their share prices have tremendously increased in last 3 years.
a. Total market cap of all 81 listed PSUs (62 CPSEs, 12 PSBs, 3 Public Sector Insurance Companies and IDBI Bank) has grown by 225%.
b. Returns by NIFTY CPSE of nearly 78.8% have significantly outpaced NIFTY 500 (27.4%) and NIFTY 50 (22.5%)
c. Market Cap of 12 listed Public Sector Banks (PSBs) has increased 2.95 times (195%) from Rs. 5.45 lakh crore (as of 31.3.21) to Rs. 16.12 lakh crore (as of 31.3.24).
d. Notably, 15 CPSEs have experienced an impressive CAGR ranging from 76% to 100%, reflecting substantial value appreciation and investor confidence. Additionally, 25 CPSEs have demonstrated strong growth with CAGR ranging between 51% to 75%, while 28 CPSEs have shown steady expansion within the range of 26% to 50%.
In fact, even under former PM Atal Ji led NDA Govt, shares of PSUs had performed better compared to UPA, due to better management.
- During 1999-2004 (NDA): PSU index soared over 300%, vastly outperforming the BSE Sensex's 70% gain.
- During 2004-09 (UPA I): The PSU index rose by 60%, but this was only half the growth rate of the Sensex.
- During 2009-14 (UPA II): The PSU index declined by 6%, while the benchmark surged by 73%.
(1/2)
@RahulGandhi had also maliciously attacked Hindustan Aeronautics Limited (HAL). Contrary to his claims, under PM @narendramodi, HAL's market valuation has skyrocketed by 1370% in merely 4 years, rising from ₹17,398 crore in 2020 to ₹2.5 lakh crore as of May 7, 2024.
HAL on 31st March 2024 announced its highest-ever revenue of more than ₹29,810 crore for FY 2023-24 and has a robust order book of over ₹94,000 crore.
These figures hardly suggest a "weakening" institution but rather one experiencing significant fortification.
Contrary to @RahulGandhi’s claim, it was the Congress party that left India crippled, relying heavily on imports rather than empowering our own institutions like HAL.
Historically, Congress has shown a lack of faith in our nation's scientists and engineers, fostering a dependency on imports that branded India as the world's largest arms importer for many years.
It is only under PM Modi that we see a significant shift—turning India from an import-dependent country to one that's now proudly stepping into the role of an arms exporter.
The increased defence spending & aim of achieving 'Atmanirbharta' in Defence has fuelled the growth of PSUs like BEL, HAL, Mazagon Dock, etc.
In FY 2023-24 alone, India has reported arms exports worth ₹21,000 crore. This achievement showcases our government's robust confidence in our scientists and engineers, a stark contrast to @INCIndia’s approach.
False claims also are made with respect to people losing jobs after disinvestment.
Let's take Air India, for an example. It was a pre-condition of the govt to the buyer that there would be NO removal or retrenchment of employees for a period of 1 year. Also, even after 1 year, there will be a voluntary retirement offer before retrenchment on terms no less favourable than maximum benefits. PF and gratuity benefits were also offered as per laws.
After a transparent disinvestment, there has been a notable improvement in operations.
Air India has seen significant growth in employment opportunities, with over 7500 NEW employees (both flying and ground staff) having joined the company since privatization. So, far from losing jobs, thousands have joined the company.
Air India is set to acquire 470 aircrafts from Boeing and Airbus for its fleet expansion at an estimated cost of $70 billion.
A similar turnaround has happened in NINL (Neelachal Ispat Nigam Ltd) post-privatization.
- There has been a perceptible turnaround in the operations of the plant. The plant started operations within 3 months of acquisition (Oct'22).
- The production of Blast Furnace was ramped up to full capacity of 1.1 MTPA within 6 months of startup. The Coke plant has been repaired and has started production in September 2023. A plan is being worked out for expansion from 1 MTPA to 4.8 MTPA.
- Not only have the operations improved, the employees have also benefitted from the disinvestment. With disinvestment, the unpaid employee dues of Rs 387.08 crore were paid to them.
So, all claims of @INCIndia and @RahulGandhi with respect to PSUs fall flat, as they are baseless.
(2/2)
HAL on 31st March 2024 announced its highest-ever revenue of more than ₹29,810 crore for FY 2023-24 and has a robust order book of over ₹94,000 crore.
These figures hardly suggest a "weakening" institution but rather one experiencing significant fortification.
Contrary to @RahulGandhi’s claim, it was the Congress party that left India crippled, relying heavily on imports rather than empowering our own institutions like HAL.
Historically, Congress has shown a lack of faith in our nation's scientists and engineers, fostering a dependency on imports that branded India as the world's largest arms importer for many years.
It is only under PM Modi that we see a significant shift—turning India from an import-dependent country to one that's now proudly stepping into the role of an arms exporter.
The increased defence spending & aim of achieving 'Atmanirbharta' in Defence has fuelled the growth of PSUs like BEL, HAL, Mazagon Dock, etc.
In FY 2023-24 alone, India has reported arms exports worth ₹21,000 crore. This achievement showcases our government's robust confidence in our scientists and engineers, a stark contrast to @INCIndia’s approach.
False claims also are made with respect to people losing jobs after disinvestment.
Let's take Air India, for an example. It was a pre-condition of the govt to the buyer that there would be NO removal or retrenchment of employees for a period of 1 year. Also, even after 1 year, there will be a voluntary retirement offer before retrenchment on terms no less favourable than maximum benefits. PF and gratuity benefits were also offered as per laws.
After a transparent disinvestment, there has been a notable improvement in operations.
Air India has seen significant growth in employment opportunities, with over 7500 NEW employees (both flying and ground staff) having joined the company since privatization. So, far from losing jobs, thousands have joined the company.
Air India is set to acquire 470 aircrafts from Boeing and Airbus for its fleet expansion at an estimated cost of $70 billion.
A similar turnaround has happened in NINL (Neelachal Ispat Nigam Ltd) post-privatization.
- There has been a perceptible turnaround in the operations of the plant. The plant started operations within 3 months of acquisition (Oct'22).
- The production of Blast Furnace was ramped up to full capacity of 1.1 MTPA within 6 months of startup. The Coke plant has been repaired and has started production in September 2023. A plan is being worked out for expansion from 1 MTPA to 4.8 MTPA.
- Not only have the operations improved, the employees have also benefitted from the disinvestment. With disinvestment, the unpaid employee dues of Rs 387.08 crore were paid to them.
So, all claims of @INCIndia and @RahulGandhi with respect to PSUs fall flat, as they are baseless.
(2/2)
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