 "Nirmala Sitharaman, Union Finance Minister | Photo: X/ @VBA2024")
Denouncing the claim by Congress leader Rahul Gandhi that central public sector enterprises (CPSEs) are being dismantled and are in disarray under the current government, Finance Minister Nirmala Sitharaman on Wednesday said the net worth of CPSEs increased by 82 per cent to Rs 17.33 trillion at the end of FY23 compared to Rs 9.5 trillion in FY14.
“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,” Sitharaman said in a post on ‘X’.
Sitharaman said the market capitalisation of 12 listed public sector banks (PSBs) surged 2.95 times in the past three years to touch Rs 16.12 trillion as of March 31, 2024.
The finance minister attributed it to the initiatives undertaken by the Modi government, emphasising that the recovery of PSBs from the banking crisis that unfolded during the UPA era. She highlighted that gross non-performing assets in PSBs have declined to a decade-low of 3.2 per cent, while profits have reached record highs.
Sitharaman underscored the government's commitment to financial inclusion, ensuring access to formal banking services across the nation.
She argued that CPSEs, including previously neglected entities like Hindustan Aeronautics Limited (HAL), have experienced a resurgence under the Narendra Modi government.
“HAL's market valuation has skyrocketed by 1,370 per cent in just 4 years, rising from Rs 17,398 crore in 2020 to Rs 2.5 lakh crore as of May 7, 2024. HAL on 31st March 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,” Sitharaman said, as she blamed the Congress for relying heavily on imports rather than empowering institutions like HAL.
Sitharaman said false claims are also made after people lost jobs due to disinvestment.
Citing the example of Air India, Sitharaman said the airline has seen significant growth in employment opportunities, with over 7,500 employees (both flying and ground staff) having joined the company since privatisation.
“It was a pre-condition of the government to the buyer that there would be no removal or retrenchment of employees for 1 year. Even after 1 year, there will be a voluntary retirement offer before retrenchment on terms no less favourable than maximum benefits. PFs and gratuity benefits were also offered as per laws,” she added.
