Finance Minister Nirmala Sitharaman recently addressed the opposition’s criticisms about the state of Public Sector Undertakings (PSUs) in India, particularly those made by the Indian National Congress (INC) and its leader Rahul Gandhi. Sitharaman took to her official social media account on X to counter these claims, stating that the assertions of PSUs being dismantled and in disarray under the current government are unfounded.
She provided a range of statistics and examples to demonstrate the significant transformation and growth of PSUs under Prime Minister Narendra Modi’s leadership, contrasting it with the neglect they experienced during the Congress-led UPA regime.
The Finance Minister also addressed the Congress party’s approach to defense and import dependency, stating, “Rahul Gandhi had also maliciously attacked Hindustan Aeronautics Limited (HAL). Contrary to his claims, under PM Narendra Modi, HAL’s market valuation has skyrocketed by 1370 percent in merely 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 4,000 crore. These figures hardly suggest a “weakening” institution but rather one experiencing significant fortification.”
The finance minister underscored the remarkable progress of public sector enterprises (PSEs) under the current government, noting a substantial increase in their net profit and net worth. According to her, the net profit of all state-run companies surged by 87 percent from FY14 to FY23, reaching Rs 2.41 lakh crore, while the net worth escalated by 82 percent to Rs 17.33 lakh crore.
Regarding market performance, Sitharaman pointed out significant growth in the market capitalization of 81 listed PSU firms over the past decade, rising by 225 percent. She highlighted the impressive returns of nearly 78.8 percent by Nifty CPSE, outperforming both Nifty 500 (27.4 percent) and Nifty 50 (22.5 percent).
She further emphasized the high investor confidence, citing Compound Annual Growth Rates (CAGR) ranging from 76 to 100 percent for the top 15 CPSEs. Additionally, she highlighted the PSU index’s remarkable surge of over 300 percent, surpassing the BSE Sensex’s 70 percent gain between 1999 and 2004. She compared this with the 60 percent gains for PSUs compared to Sensex returns between 2009 and 2014.
Sitharaman highlighted the resurgence of PSUs like Hindustan Aeronautics Limited (HAL) under the Modi government, stating, “Repeated claims from the INCIndia ecosystem and Rahul Gandhi in particular that Public Sector Undertakings (PSUs) are being dismantled & are in disarray under the current government are a textbook example of ‘Ulta Chor Kotwal Ko Daante.'”
Moreover, the finance minister noted the significant growth of Hindustan Aeronautics Limited (HAL), whose valuation has soared to Rs 2.5 lakh crore within four years. HAL achieved its highest-ever revenue in FY24 and boasts a robust order book of Rs 94,000 crore.
Repeated claims from the @INCIndia ecosystem and @RahulGandhi in particular that Public Sector Undertakings (PSUs) are being dismantled & are in disarray under the current government are a textbook example of 'Ulta Chor Kotwal Ko Daante,' as the facts reveal a very different…
— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 8, 2024
Regarding claims of job losses after disinvestment, Sitharaman cited Air India as an example, stating, “Let’s take Air India, for an example. It was a pre-condition of the govt to the buyer that there would be NO removal or retrenchment of employees for a period of 1 year. Also, even after 1 year, there will be a voluntary retirement offer before retrenchment on terms no less favourable than maximum benefits. PF and gratuity benefits were also offered as per laws.
After a transparent disinvestment, there has been a notable improvement in operations. Air India has seen significant growth in employment opportunities, with over 7500 NEW employees (both flying and ground staff) having joined the company since privatization. So, far from losing jobs, thousands have joined the company. Air India is set to acquire 470 aircraft from Boeing and Airbus for its fleet expansion at an estimated cost of USD 70 billion.”
Sitharaman concluded by asserting that the claims made by the INC and Rahul Gandhi regarding PSUs are baseless, stating, “FM Sitharaman asserted that the claims made by the INC and Rahul Gandhi regarding PSUs are baseless, as the facts reveal a different picture of growth, revitalization, and enhanced performance under the Modi government.”