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Expressing happiness with the performance of Central Public Sector Units, President Pranab Mukherjee today asked CPSEs to explore overseas investment opportunities for enhancing scale of operation and reach.
"The total cash and bank balance of CPSEs as on March 31, 2012 was Rs 2.8 lakh crore. This indicates their potential to make investments for capacity expansion and strategic assets creation," Mukherjee said in his address on the Public Sector Day celebration here.
"CPSEs should upgrade their technology models through increased foreign collaboration. They should target greater overseas investment to enhance their scale of operation and market reach," he added.
The President also suggested eligible CPSEs to get their shares listed in the stock exchanges for unlocking value and avail the benefits of listing.
"There are 50 listed CPSEs. Many unlisted CPSEs have the capacity to meet the listing norms. I am sure that many of them will approach the capital market in the future and avail the benefits of listing. The potential to unlock value through listing is high," he said.
The President cited the example of Coal India in which the government had raked in Rs 15,199 crore by divesting its 10% stake through IPO in October, 2010.
Outlining the "remarkable" growth of the public sector, he said from just five CPSEs with a total investment of Rs 29 crore on the eve of India's first five-Year Plan, there are 260 CPSEs with a total investment of Rs 7.3 lakh crore, as on March 31, 2012.
"The performance of CPSEs in 2011-12 gives us a big reason for cheer. Total income of CPSEs at Rs 18.2 lakh crore is 34.8% of India's GDP. Foreign exchange earnings of CPSEs at Rs 1.2 lakh crore is 8.5% of India's total exports," he said.
CPSEs contributed Rs 1.6 lakh crore to the central exchequer by way of taxes, duties, interest on loans and dividend, amounting to 21.4% of government's revenue receipts.
However, expressing concern over the number of sick units, which stood at 66 as on March-end, 2012, he said, "Though the number of such CPSEs has declined over the last few years, much more needs to be done to revive, strengthen and modernise these sick units."
