Central Public Sector Enterprises (CPSEs), which were formed to usher in a socialist pattern of society, are contributing significantly to the country's economy, according to a study by SCOPE.
The Standing Conference of Public Enterprises (SCOPE), the apex body of CPSEs, said the total turnover of public sector units is equivalent to 23.74% of the nation's GDP.
The study said the equity capital of CPSEs advanced from Rs 43,245 crore in 1990-91 to Rs 1,38,843 crore by 2008-09, which was almost three times.
The turnover of the CPSEs expanded from Rs 1,18,676 crore to Rs 12,63,405 crore during the same period, translating into an increase of around 10 times, the SCOPE study said.
Similarly, the net profit of CPSEs grew from Rs 2,272 crore to Rs 84,228 crore, an increase of 37 times during the same period, the study said.
The market capitalisation of the 44 listed CPSEs outside the banking sector has also grown from Rs 5,25,400 crore to Rs 14,83,600 crore during the period, an increase of 181%.
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The SCOPE study said the total share of all the listed CPSEs amounted to 30% of the total market capitalisation of around 7,000 listed companies on the Bombay Stock Exchange (BSE).
Out of the eight Indian companies in the Fortune 500 list, four were CPSEs and one was a public sector bank, State Bank of India. The four CPSEs were Indian Oil, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and ONGC.
The study said while all the private companies had either cut down on production or went slow on their investment plans during the slowdown, CPSEs did not cutback on production and went ahead with their investment plans.
This, SCOPE said, had helped the country in maintaining the growth momentum during the slowdown.
In terms of corporate social responsibility (CSR), the role played by CPSEs was enviable, it said.
According to SCOPE, public units were required to spend 2% of their net profits on CSR activity.
Further, it said that contrary to perceptions, the CPSEs performed well in terms of resource efficiency.