New Delhi, March 3: While the government marches ahead with its privatisation drive, the public sector enterprises have clocked an impressive 66 per cent growth in net profit to touch the Rs-26,045-crore mark during 2001-02. This translates into a rate of return of about 25 per cent on equity capital.
These figures for 230 public sector enterprises (PSEs) have been highlighted in the Annual Public Enterprises Survey tabled in Parliament today.
According to the survey, the turnover of PSEs went up by Rs 20,491 crore from Rs 4,58,237 crore to Rs 4,78,728 crore during the reporting year. Investment during the year jumped by 18.39 per cent to Rs 3,24,623 crore from Rs 2,74,198 crore in 2000-01.
This is also reflected in the figures for capital employed in PSEs which went up by 17.76 per cent from Rs 3,31,410 crore in 2000-01 to Rs 3,90,261 crore during 2001-02.
Of the total investment of Rs 3,24,632 crore during 2001-02, the central government contributed Rs 1,43,205 crore, the state governments together gave Rs 1,294 crore, holding companies Rs 26,333 crore, foreign parties Rs 6,844 crore, banks and financial institutions Rs 1,42,047 crore.
The contribution of these PSEs to the central exchequer by way of excise duty, customs duty, corporate tax, interest on government loans, dividend and other duties and taxes stood at Rs 62,753 crore in 2001-02 compared with Rs 61,037 crore recorded the previous year, up by 2.81 per cent.
However, the dividend declared by the central PSEs witnessed a decline of 2.34 per cent to Rs 8,067 crore in 2001-02 compared with Rs 8,260 crore recorded during the corresponding period of the preceding year.
The dividend payout ratio has gone down from 52.77 per cent in 2000-01 to 30.97 per cent in 2001-02, says the survey.
On disinvestment, the survey says that the government could only realise low prices on sales of minority shares of blue chip companies like BPCL, HPCL, Gail and VSNL before the year 2000, and that it was found that the prices realised through strategic disinvestment have been very high.
The survey says a comparison of the sale of minority shares vis-à-vis strategic disinvestment indicate that the sale of (minority) shares in public sector oil giants like IOC, BPCL, HPCL, Gail and VSNL undertaken during 1991-99 only fetched a price to earning ratio of 4.9, 5.7, 5.9. 4.4 and 6, respectively.