Amid concerns regarding the flailing valuations of public sector enterprises, the Economic Survey has made a strong pitch towards "complete revamp" of the boards of the Central Public Sector Enterprises (CPSEs). The survey has also suggested to enhance the operational autonomy of CPSEs.
"While disinvestment and rationalisation of some the CPSEs is being planned, there is also a need to strengthen the ones that would be retained in their respective sectors so as to fully meet with the expectations of the government," the survey said.
"An important step in this direction would be to completely revamp the Boards of the CPSEs to reorganise their structure, enhance their operational autonomy coupled with strong corporate governance norms including listing on stock exchanges for greater transparency," it added.
The survey also pointed out that there are 366 CPSEs as of March 2020. Of these, 256 are in operation. Interestingly only 171 of the operational CPSEs booked profit during FY20.
The total profit of profit-making CPSEs was Rs 1.38 lakh crore in FY20, whereas the consolidated loss of loss-making enterprises was Rs 44,816 crore, the survey mentions.
"The overall net profit of the CPSEs declined by 34.6 per cent to reach Rs 93,295 crore in FY20 from Rs 1.43 lakh crore in FY19. CPSEs are operating in four sectors - agriculture, mining and exploration, manufacturing, and services," the survey added.
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