image

President Speak :: CPSEs have potential for Investments for capacity Expansion and Strategic Assets Creation

Central Public Sector Enterprises have the Potential to make Investments for capacity Expansion and Strategic Assets Creation
PRANAB MUKHERJEE
The President Confers the SCOPE Meritorious Awards on the Public Sector Day

Shri Pranab Mukherjee, President of India, presented the SCOPE Meritorious Awards in Specialized Fields to the Central Public Sector Enterprises (CPSEs) here today on the occasion of the 4th Public Sector Day Celebrations. The recipients of the Awards are: SAIL, IOC, ONGC, Neyveli Lignite Corp., ECIL, IREDA, NSTFDC. Four CPSEs were presented the Commendation Certificates: WAPCOS, CONCOR, EIL and ALIMCO. The President also felicitated BHEL and GAIL (India) Ltd., the two CPSEs who were recently conferred the ˜Maharatna™ status. Shri Praful Patel, Minister of Heavy Industries & Public Enterprises, Dr. Nitish Sengupta, Chairman, BRPSE, Shri O.P. Rawat, Secretary, Department of Public Enterprises (DPE), Shri C.S. Verma, Chairman, SCOPE and Dr. U.D. Choubey, Director General, SCOPE, also addressed the function organized jointly by SCOPE and DPE.

Addressing the function, Shri Pranab Mukherjee said that the growth potential of CPSEs should be strengthened by greater investment, faster expansion and technology up-gradation. He said, The total cash and bank balance of CPSEs as on 31 March, 2012 was Rs. 2.8 lakh crore. This indicates their potential to make investments for capacity expansion and strategic assets creation. CPSEs should up-grade their technology models through increased foreign collaboration. They should target greater overseas investment to enhance their scale of operation and market reach. I am happy to note that our CPSEs are active in pursuing overseas investment projects. I am told that ONGC Videsh Limited participates in 30 exploration and production projects in 14 countries. Five leading CPSEs have formed a joint venture, International Coal Ventures Private Limited, to acquire coal assets abroad.

English: Pranab Mukherjee, Indian politician, ...

Pranab Mukherjee, President of Republic of India

Appreciating the growth of the CPSEs, Shri Mukherjee said, From 5 CPSEs with a total investment of Rs. 29 crore on the eve of India™s first Five Year Plan, there are 260 CPSEs with a total investment of Rs. 7.3 lakh crore as on 31 March, 2012. The performance of CPSEs in 2011-12 gives us a big reason for cheer. Total income of CPSEs at Rs. 18.2 lakh crore is 34.8 per cent of India™s GDP. Foreign exchange earnings of CPSEs at Rs. 1.2 lakh crore is 8.5 per cent of India™s total exports. CPSEs contributed Rs. 1.6 lakh crore to the Central Exchequer by way of taxes, duties, interest on loans and dividend. This amounts to 21.4 per cent of Government of India™s revenue receipts. The President said that CPSEs should lay emphasis on corporate social responsibility (CSR) initiatives. He said, Many CPSEs occupy major portions of towns and cities. Greenfield CPSEs have set up industrial townships. These CPSEs should concentrate on CSR activities in the fields of health, education and environmental up-gradation.

Earlier, welcoming the President, Shri Praful Patel said that CPSEs continue to play a stellar role in the sustainable and inclusive growth of the country. He said that despite tough competition from the private sector, many CPSEs have been able to surge ahead continuously and showed results which everyone should be proud of. Shri Patel said that the Roongta Committee Report is being considered by the government and its recommendations will be implemented. He said that the government would like to think even further than the recommendations of the said Committee.

*****

Tags: Department of Public EnterprisesGovernment of IndiaIndiaInternational Coal Ventures Private LimitedNavratnaPraful PatelPublic sectorShri Praful Patel

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates