In Central PSU turnaround stories, there's a lesson for the states, Pg10

Key Highlights:

• The number of profit-making CPSEs increased from 157 in FY15 to 227 in FY25, while loss-making CPSEs decreased from 77 to 63.
• Net profit of profit-making CPSEs rose to Rs 3.09 lakh crore in FY25, a 2.4 times increase from Rs 1.30 lakh crore in FY15.
• CPSEs' contribution to the central exchequer reached Rs 4.94 lakh crore in FY25, compared to Rs 2.00 lakh crore in FY15.
• Market capitalization of 66 CPSEs traded on stock exchanges was Rs 38.57 lakh crore as of March 31, 2025, tripling since March 31, 2015.
• PSU banks saw net profits rise from Rs 80,913 crore in FY14 to Rs 4 lakh crore in FY25.
• Defence exports by CPSEs surged to a record high of Rs 23,622 crore in 2024-25.

Detailed Insights:

• The 2020 New PSE Policy for Atmanirbhar Bharat streamlined PSEs, classifying sectors as strategic or non-strategic, minimizing government presence in non-strategic sectors and maintaining a minimal presence in strategic sectors.
• Gross capital formation by non-financial CPSEs has grown by 11.9 per cent, serving as a key driver of investment demand in core sectors and accounting for 10% of national savings.
• Following amalgamation, PSU banks have shown improved financial performance and increased technology adoption, with return on assets increasing to 1.37 per cent in FY25 from -0.22 per cent in FY18.
• Indian Railways, though not a PSE, successfully trialed India’s first hydrogen-powered coach in July 2025 and has electrified approximately 45,000 km of its broad-gauge network in the last decade, reducing emissions.
• Indian oil PSUs have established a global presence with 45 assets across 21 countries, with a cumulative investment of about $40.6 billion, following the government's decision to allow CPSEs to acquire foreign assets.
• Positive reforms transforming CPSEs should extend to state-level PSEs, enhancing transparency and catalyzing regional development.

Key Concepts Involved:

• Central Public Sector Enterprises (CPSEs): Companies in which the direct holding of the Central Government or other CPSEs is 51% or more.
• Atmanirbhar Bharat: A vision of making India a self-reliant nation, encompassing policies across various sectors to promote domestic production and reduce dependence on imports.
• Gross Capital Formation: The total value of gross fixed capital formation (investment in fixed assets) and change in inventories.