Page 2 - Public Sector Enterprises

BS Number Wise: A strategy for non-strategic state firms as losses mount

The govt needs to act quickly to capitalise on the assets of such enterprises

Capital expenditure by CPSEs accelerates to 43% of FY23 target in H1

While CPSEs spent Rs 2.8 trillion in capex in the first half of FY23, they had invested Rs 2.19 trillion during the year-ago period, registering 27.85 growth per cent

There's a sea change in public sector cloud in India: AWS' Rahul Sharma

Digital India's mindset acted as a catalyst to bring this transformation of citizen-facing services, says Rahul Sharma, Regional Head, AWS India

Public sector contributes 20% to national income, 40% of total wages

The public sector contributes only 20 per cent to the national income, but accounts for nearly 40 per cent of the total wages, a report by a domestic ratings agency said on Monday. The average share of the public sector in gross value addition for the ten years ending FY21 is 19.2 per cent but the share in wages is 39.2 per cent, India Ratings and Research said in an analysis based on gross value added (GVA) data released by the National Statistical Office. The share of the private sector in GVA and wages is "more evenly balanced", the agency said, pointing out that it accounts for 35.2 per cent of the wages while its contribution to GVA is 36.3 per cent for the same period. It can be noted that those pressing for a lesser role of the state in the economy, often point out to the lack of efficiency in the public sector. The agency's report said nominal wages grew at a compounded annual growth rate (CAGR) of 10.4 per cent, while return on capital grew at a CAGR of 8.8 per cent during

Private good, public loss: PSEs have been losing mkt share to private peers

A Business Standard analysis of data in the CAG report shows the market share of the four insurers is eroding

States to get matching amounts from Centre for SPSEs' privatisation

The Centre has allocated Rs 5,000 crore for disinvestment of SPSEs and asset monetisation

Fitch enhances ratings of 13 Indian firms to 'moderate downgrade risk'

These companies are either govt-related entities (GREs) with ratings linked to the sovereign rating or pvt entities whose ratings would be downgraded if India's Country Ceiling was lowered to 'BB+'

Divestment not to shut down PSEs but prime them up: FM Sitharaman

So far in the current fiscal year, the government has mopped up over Rs 24,000 crore from CPSE disinvestment

Asset monetisation

Govt should reassess the plan

Improve governance before divesting

A fixation on the target amount, without improving the corporate governance of public sector enterprises, is misplaced

Moody's upgrades BPCL outlook to 'stable' as govt calls off stake sale

The rating agency affirmed BPCL's Baa3 issuer rating reflecting its position as the second-largest state-owned refining and marketing company in India

Cabinet empowers PSU boards to recommend stake sale, close subsidiaries

At present, PSU boards have the authority to make equity investments, undertake mergers and acquisitions subject to certain ceilings of net-worth

Govt bars PSEs from buying state-owned companies on block for privatisation

The finance ministry has barred public sector enterprises from bidding for other Central Public Sector Enterprises (CPSEs) which are on the block for privatisation

Govt receives Rs 4,353 crore as dividend tranches from 7 CPSEs

The government on Tuesday said it has received Rs 4,353 crore as dividend tranches from seven public sector enterprises, including Coal India and PFC.

Disinvestment needs a different approach

Since the government now has a clear policy for PSEs, it should recalibrate the disinvestment programme

Centre set to rejig privatisation process for non-strategic sectors

Companies in non-strategic sectors would be considered for privatisation, wherever feasible, or else they would be closed

New govt SPV likely to get powers to acquire and develop PSU land

The entity will be able to rent, lease and develop assets to monetise them for a fee, an official said

Improve governance and rules instead of privatisation: Raghuram Rajan

Rajan was also critical of the government for not focusing enough on healthcare and education, and cutting down on expenditure

No caste-based job reservation in PSBs after disinvestment: Report

This move, however, will not impact employees who have affirmative action benefits.

Start with smaller banks

Govt must have a clear road map for PSB privatisation