How Did Central PSEs Achieve a 120% Surge in Financial Contributions Over 11 Years?
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Synopsis
Discover how Central Public Sector Enterprises (CPSEs) have remarkably increased their contribution to India's financial resources by 120% over 11 years, reaching a record Rs 4.85 lakh crore in FY2023-2024. This achievement highlights the effectiveness of the government's resource optimization strategies and the growing strength of India's public sector.
Key Takeaways
- CPSEs' contribution reached Rs 4.85 lakh crore.
- 120% increase from FY2013-2014.
- Significant profits reported by SBI and LIC.
- Government's resource optimization measures effective.
- PSUs play a key role in India's economic growth.
New Delhi, June 16 (NationPress) The Central Public Sector Enterprises (CPSEs) have made a remarkable contribution of Rs 4.85 lakh crore to India’s financial resources in FY2023-2024, marking a stunning 120 per cent increase from the Rs 2.20 lakh crore recorded in FY 2013-2014, as reported by the Finance Ministry on Monday.
The ministry revealed that the central government's resource optimization measures have proven effective, as shared in a post on the social media platform X.
"In FY 2023-24, the total contribution by the Central Public Sector Enterprises (CPSEs) to the Central Exchequer was Rs 4.85 lakh crore, a phenomenal increase of 120 per cent from Rs 2.20 lakh crore in FY 2013-14," stated the ministry.
Just last week, Union Finance Minister Nirmala Sitharaman received a dividend cheque amounting to Rs 8,076.84 crore on behalf of the government from the State Bank of India (SBI) for the financial year 2024-25.
Prominent public sector companies in the financial, power, and energy sectors showcased impressive profit growth in Q4 FY25. The nation’s largest lender, SBI, and the insurance giant, Life Insurance Corporation of India (LIC), led the performance with net profits of Rs 18,643 crore and Rs 19,013 crore, respectively.
SBI's net profit for the financial year 2024-25 has now surged to Rs 70,901 crore, while LIC has achieved a commendable net profit of Rs 48,151 crore for the year.
In the fourth quarter, Coal India reported a net profit of Rs 9,604 crore, while Indian Oil Corporation (IOC) posted a net profit of Rs 7,265 crore. Furthermore, ONGC, a major player in upstream oil exploration, recorded a net profit of Rs 6,448 crore during this quarter.
NTPC achieved a net profit of Rs 7,897 crore, while Power Finance Corporation (PFC), also under the Ministry of Power, generated a robust Rs 8,358 crore. Moreover, Power Grid Corporation of India reported a strong profit of Rs 4,143 crore in the January-March quarter.
The government, led by Prime Minister Narendra Modi, has fortified India’s PSUs over the past 11 years, transforming them into wealth creators and making them pivotal to the nation's economic growth. Through targeted reforms, strategic autonomy, and capital support, the market capitalization of PSUs has soared across the energy, power, and infrastructure sectors.
Point of View
I believe that the significant contributions of Central Public Sector Enterprises reflect the government's commitment to enhancing economic stability and growth. It is crucial that we continue to support and monitor these entities to ensure they remain integral to India's development trajectory.
NationPress
16/06/2025
Frequently Asked Questions
What is the contribution of CPSEs to India's financial resources in FY2023-2024?
The Central Public Sector Enterprises (CPSEs) contributed a record Rs 4.85 lakh crore to India's financial resources in FY2023-2024, which is a 120% increase compared to Rs 2.20 lakh crore in FY2013-2014.
What measures did the government take to enhance CPSE contributions?
The government implemented resource optimization measures that have proven effective in increasing the financial contributions of CPSEs to the national exchequer.
Which major public sector companies reported significant profits?
Major public sector companies such as SBI, LIC, Coal India, IOC, ONGC, and NTPC reported substantial profits, contributing to the overall increase in CPSE contributions.
How has the Prime Minister’s leadership influenced PSUs?
Under Prime Minister Narendra Modi's leadership, significant reforms and support have strengthened India's PSUs, turning them into vital wealth creators for the nation.
What are the implications of increased CPSE contributions for the economy?
Increased contributions from CPSEs bolster the financial resources available to the government, enabling further investment in infrastructure, development, and public services, thus stimulating economic growth.
