Government's Equity Infusion In PSUs Sees 108% Growth Over Five Years
The Centre infused a total of Rs 3.52 lakh crore in central PSUs in fiscal 2023, as compared to Rs 1.69 lakh crore in fiscal 2018.
The government infused a total of Rs 3.52 lakh crore in equity in central public sector undertakings in the fiscal 2023, according to the data provided by the Ministry of Finance on Tuesday.
This marks a 108% climb as compared to a combined equity infusion of Rs 1.69 lakh crore into central PSUs in fiscal 2018.
The data for the five-year period, stretching from 2018 to 2023, was shared by Union Minister of State for Finance Pankaj Chaudhary in response to queries raised by lawmakers in Lok Sabha.
The government's cumulative equity infusion in central PSUs stood at 1.83 lakh crore in fiscal 2019, Rs 2.04 lakh crore in fiscal 2020, Rs 1.96 lakh crore in fiscal 2021 and Rs 2.28 lakh crore in fiscal 2022.
The MoS Finance, in his reply, clarified that there are no specific guidelines that make central PSUs eligible for fresh equity infusion. The decision is taken on a "case-to-case basis", depending upon the need for expansion or investment, he stated.
The minister, however, noted that the sectoral ministries in charge of each center public sector enterprise "determine investments, including equity infusion, according to the individual needs of the enterprise".
Also, there are no specific eligibility guidelines as new equity infusions are made individually, depending on the CPSE's need for expansion or investment.
In response to the query on whether the impact of recent equity infusions into PSUs has been reviewed, the finance ministry said that the Department of Public Enterprises evaluates the performance as per the extant guidelines.
On being asked about the steps taken to help PSUs to raise internal resources or enhance their borrowing capacity, Chaudhary said they have the authority to raise internal funds to meet their business needs.
"The boards of Maharatna and Navratna CPSEs are also authorised to raise debt from domestic and international capital markets, subject to approval from the Reserve Bank of India and Department of Economic Affairs, as required, through their respective administrative department," he stated.
