Top PSEs plan to raise Rs 1,42,000 cr in FY08

The central government's public sector enterprises (PSEs), barring the railways, are planning to mobilise nearly Rs 1,42,000 crore in 2007-08, a 40 per cent increase over the current fiscal.

The government is contributing only Rs 12,444 crore, out of the total Rs 1,54,108 crore Plan investment of public sector undertakings for 2007-08.

The resource mobilisation data are even more impressive when seen in the light of the 15.6 per cent increase recorded this year over the previous fiscal. These numbers show the growing confidence of India's state-owned companies to expand in a fast-growing economy, which has seen an average GDP growth rate of 8.9 per cent so far this fiscal.

The plans to mobilise resources by 100 PSEs (from a total of 146) also show that these companies have increasingly become less dependent on central government support. Budgetary support for PSEs, as a percentage of the total Plan investment, is projected to decline from 16 per cent in 2006-07 to 8 per cent in 2007-08.

The government-owned oil companies are planning to raise Rs 38,902 crore in 2007-08. However, the data do not capture the oil bonds issued by the government as these are classified as off-Budget items.

Among the PSEs, Bharat Sanchar Nigam Ltd is planning to raise Rs 22,881 crore, Oil and Natural Gas Corporation Rs 17,887 crore, NTPC Ltd Rs 12,792 crore, Powergrid Corporation Rs 6,500 crore, Housing and Urban Development Corporation Rs 6,388 crore and Air India Rs 6,337 crore.

"The numbers show that public enterprises are doing well. But it is not a sea change. There is a long way to go before they become self-sufficient. As far as the public sector oil companies are concerned, they have been self-sustaining for a long time," said S Behuria, chairman, Standing Committee on Public Enterprises, and Indian Oil.