New Delhi: Defending the performance of public sector units (PSUs) in the country, Union finance minister Nirmala Sitharaman on Wednesday said that PSUs are not in disarray, but thriving under the current government. Rather, they have suffered under the Congress-led UPA government and previously neglected ones like, the Hindustan Aeronautics Limited (HAL), have seen a “resurgence” under the Modi government.
The finance minister in a social media post on X (formerly Twitter) said that under the Modi-government, public sector undertakings (PSUs) are thriving, benefiting significantly from the culture of professionalism infused in them along with increased operational freedom. Her post came after the allegations made by the Congress party and its leader Rahul Gandhi that state-owned companies are in a disarray.
She further said that such claims are a textbook example of the pot calling the kettle black. PSUs have suffered under the Congress-led UPA government. The PSUs that were previously neglected under the UPA government, such as Hindustan Aeronautics Limited, have seen a resurgence under the Modi government,” she added.
“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' (pot calling the kettle black), as the facts reveal a very different picture,” Sitharaman posted on X.
Accusing Gandhi of “maliciously” attacking HAL, Sitharaman also said, contrary to his claims, HAL’s market valuation has skyrocketed by 1,370 per cent in merely four years, rising from Rs 17,398 crore in 2020, to Rs 2.5 lakh crore as of May 7, 2024. HAL on March 31, 2024 announced its highest-ever revenue of more than Rs 29,810 crore for FY 2023-24 and has a robust order book of over Rs 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,” Sitharaman wrote.
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, she said, adding it is only under Prime Minister Narendra 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 finance minister also said that the government's focus on capital expenditure has led to substantial growth in the stock performance of PSUs, as the net worth of all Central Public Sector Enterprises (CPSEs) increased 82 per cent from Rs 9.5 lakh crore as of March 2014, to Rs 17.33 lakh crore as of 2022-23 fiscal.
“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,” she said.
“Due to better management of PSUs, their share prices have tremendously increased in the last three years, she said, adding the total market cap of all 81 listed PSUs (62 CPSEs, 12 PSBs, 3 public sector insurance companies and IDBI Bank) has grown by 225 per cent,” she added.
