Central Public Sector Enterprises turn over increased to Rs 10,81,000 crore in 2007-08

The turn over of Central Public Sector Enterprises (CPSEs) has increased from Rs. 5,87,000 crore in 2003-04 to Rs. 10,81,000 crore in 2007-08 showing a growth of 84 percent. During the same period profits of CPSEs have increased by 72% from Rs. 53,000 crore to Rs. 91,000 crore and their contribution to the central exchequer by way of dividend, interest and taxes and duties has recorded an increase of 86%.

The number of loss making enterprises has come down from 73 in 2003-04 to 55 in 2007-08 and the number of profit making enterprises has gone up from 143 to 158 during the same period. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha today.

He further stated that in order to maintain ethics and probity in the functioning of CPSEs, the Government has approved the implementation of guidelines on corporate governance in CPSEs in June 2007. In November 2007, the Government constituted the National Investment Fund into which the proceeds from disinvestment of Government equity in central PSEs are deposited.

Three-quarters of annual income of the fund will be used to finance select social sector schemes, which promote education, health and employment. The residual 25% annual income of the fund will be used to meet the capital investment requirements of profitable and revivable CPSEs.

Source : Equity Bulls

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