Standing Conference of Public Enterprises (SCOPE), the apex organisation of Public Sector Enterprises (PSEs) has initiated commemoration of Public Sector Day on April 10 to showcase the glorious history, spirit, achievement and contribution of PSEs. UD Choubey, director general, SCOPE spoke to Hindustan Times on a range of issues. Excerpts:
The public sector fraternity will be celebrating April 10, 2012 as Public Sector Day...
SCOPE’s initiative to celebrate Public Sector Day has become an important day in the history of public sector enterprises in India. This year, it will be a week-long event from April 10 to 17. The president will be chief guest at the main function, which will be synchronised with SCOPE Meritorious Awards in specialised fields of environmental excellence, corporate governance, corporate social responsibility, human resource management, R&D, technology development and innovation, best managed bank, financial institution or insurance company and best managed PSE set up under section 25.
How has the performance of public sector enterprises been since liberalisation of Indian economy?
Central PSEs have displayed extraordinary resilience in successfully meeting the challenges thrown up by liberalisation and globalisation of Indian economy. They have also withstood the global meltdowns and domestic turbulence giving much needed strength to the Indian economy. They continue to prosper and grow. Today, giant PSEs are symbols of management excellence and have pride of place in the hierarchy of corporate India. They are pace setters in corporate governance, CSR and actively contributing towards inclusive growth of the country. In fact, Indian public sector has emerged as a role model not only in our country but the entire world.
How has the growth been in financial terms?
Central PSEs have registered appreciable growth in the post reform period ending 2010-11. Their net worth has expanded to Rs7,23,128 crore in 2010-11 from Rs60,271 crore in 1990-91, which is about 12 times more. The profit after tax has risen to Rs92,077 crore, which is over 40.5 times the increase. This was achieved with a relatively modest expansion of 3.59 times in equity capital to Rs1,55,433 crore from Rs43,245 crore. The turnover of CPSEs has increased by 12.41 times in the post reform period to Rs14,73,319 crore registering 18.36% increase over the previous year. The public sector has been meeting its own needs to realise organically sustainable growth. It has refrained from depending on national exchequer for its own development. Instead it has internally generated investible funds. It has also been contributing handsomely to the coffers of the exchequer.
Tell us about their efforts towards sustainable development?
Public sector enterprises, in their pursuit of the triple bottom-line of people, planet and profit, have assigned a high priority to the adherence of CSR ideals. They are earmarking 2% of their net profit towards CSR. SCOPE feels that there is need to make CSR spending mandatory for private corporates as well to provide a level playing field to PSEs. Further, CPSEs in their endeavour to pursue sustainable development have also demonstrated their prowess in terms of expanding operations overseas, entering into joint ventures with globally well-known entities. The foreign exchange earnings of CPSEs in 2010-11 at Rs84,224 crore were about 12 times those earned in 1990-91. During 2010-11, enterprises raised Rs81,674 crore in borrowings of which over 82% were unsecured loans pointing to the clout they acquired overseas.