Net worth of Central Public Sector Enterprises increased by 82%, PSEs are pillars of National Progress

Public Sector Enterprises (PSEs) stand as pillars of national progress, driving India’s economy forward with unwavering commitment and resilience. These enterprises are not only instrumental in fostering economic stability but also play a vital role in addressing critical national priorities, from infrastructure development to energy security. Their contributions are multifaceted—funding government initiatives, creating jobs, and uplifting communities across the country.

Petroleum Minister Hardeep Singh Puri recently highlighted the critical role of Public Sector Enterprises (PSEs) in advancing India’s economic growth, with the country on track to become the world’s third-largest economy. Here’s a breakdown of his main points:

1. Financial Growth of PSEs: Minister Puri provided impressive statistics to show how well Central Public Sector Enterprises (CPSEs) are performing. Over the past decade, the net worth of these enterprises has grown by 82%—from ₹9.5 lakh crore in FY14 to ₹17.33 lakh crore in FY23. CPSEs are also contributing much more to the government’s revenue through taxes and dividends, with contributions doubling from ₹2.20 lakh crore in FY14 to ₹4.58 lakh crore in FY23. This shows that CPSEs are not only profitable but are also playing a large role in funding government initiatives.
2. Increasing Profitability and Market Value: Profit-making CPSEs saw an 87% increase in net profits over the last decade, from ₹1.29 lakh crore in FY14 to ₹2.41 lakh crore in FY23. Additionally, the combined market value of 81 listed PSEs has surged by 225%, outpacing both the PSE Index and the BSE Sensex (a measure of stock performance). This growth signals that public enterprises have strengthened their financial foundations and have become major contributors to India’s overall market value.
3. PSEs’ Role in National Development: Minister Puri emphasized that PSEs are essential to India’s economic stability and progress, and their resilience and profitability help ensure steady economic growth. He pointed out that the upcoming years will be critical as India seeks to continue expanding its economy, and PSEs will be key players in achieving this growth.
4. Vision for India’s Energy Sector: The Minister shared a vision for energy development, stressing three key principles—availability (ensuring a steady supply), affordability (keeping costs manageable), and sustainability (environmentally responsible growth). Sustainability, he noted, is central to India’s long-term energy strategy.
5. Bioethanol Progress: One example of sustainable energy progress is India’s bioethanol blending initiative, where ethanol is mixed with petrol to reduce dependency on fossil fuels. Ethanol blending has risen from 1.53% in 2014 to 15% in 2024, with a target of 20% by 2025. This target has been moved up by five years from the original 2030 goal, showing India’s commitment to renewable energy.
6. Transition to Clean Energy While Maintaining Fossil Fuels: While India is moving towards cleaner energy, the Minister acknowledged that fossil fuels will still be necessary in the foreseeable future. India aims to manage the transition without compromising energy security, stability, and affordability for its citizens.
7. Reforms in Oil and Gas Exploration: India is opening up more areas for oil and gas exploration by reducing restrictions in Exclusive Economic Zones (EEZs). The government has removed 99% of the previously restricted (No-Go) areas, allowing the largest-ever offering of land for exploration—1,36,596 square kilometers in total. This includes areas previously restricted, now available for oil and gas development, signaling a major shift to increase domestic production.

Overall, Minister Puri’s statements reflect the government’s strong focus on making PSEs robust contributors to the economy, ensuring a reliable and sustainable energy supply, and boosting domestic oil and gas exploration. These steps are intended to support India’s long-term economic goals and reduce reliance on foreign energy sources.