SEPTEMBER 2014

Point
Out
IN FOCUS PSUs
5 STATES CLAIM HALF OF PSUS INVESTMENT;
MAHARASHTRA AT TOP: ASSOCHAM
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BUSINESS BUREAU
Maharashtra, Andhra Pradesh,
Tamil Nadu, Odisha and
Uttar Pradesh were the major
investment destinations for
the Central Public Sector Enterprises
(CPSEs) claiming 50 per cent of their
total investment of Rs 5.5 lakh crore
between 2008-09 ad 2012-13.
Maharashtra alone claimed 20 percent
in the total gross block, followed
by Andhra Pradesh (8.4 percent),
Tamil Nadu (8.1 percent), Odisha
(6.7 percent) and Uttar Pradesh (6.2
percent).
The investment would have been much
more with improved employment
generation had there not been delays
in execution and implementation of the
new projects, the ASSOCHAM study
said.
There were altogether 582 projects
under implementation in the central
sector as on June, 2013. Out of these,
311 projects reported a time over run
ranging from one month to 240 months
which could have had a negative impact
on employment.
“Investment is a function of the
state of economy, historical base
of the concerned CPSE, industrial
environment and the push factor of
the states besides priorities of the
Central Government. Despite talks of
autonomy, the public sector investment
decisions are influenced by several
factors other than pure commercial
considerations,” ASSOCHAM
Secretary General D S Rawat said.
Besides the top five states receiving the
maximum of CPSE investment, other
Maharashtra, Andhra Pradesh, Tamil Nadu, Odisha and Uttar Pradesh were the
major investment destinations for the Central Public Sector Enterprises (CPSEs)
claiming 50 per cent of their total investment of Rs 5.5 lakh crore between 2008-
09 ad 2012-13. Maharashtra alone claimed 20 percent in the total gross block,
followed by Andhra Pradesh (8.4 percent), Tamil Nadu (8.1 percent), Odisha (6.7
percent) and Uttar Pradesh (6.2 percent).
major beneficiaries included West
Bengal (5.3 percent), Chhattisgarh
(4.8 percent), Assam (3.9 percent),
Madhya Pradesh (3.8 percent), and
Himachal Pradesh (3.4 percent), adds
the ASSOCHAM paper.
Interestingly, those which are at the
bottom of the investment destinations
include some of the developed states
like Gujarat, Karnakata and Haryana.
The bottom states in terms of CPSE
investments are: Bihar (3.2 percent),
Gujarat (2.8 percent), Karnataka (2.5
percent), Jharkhand (1.9 percent),
Kerala (1.5 percent), Rajasthan (1.1
percent), Jammu & Kashmir (1.1
percent), Arunachal Pradesh (0.9
percent), Uttaranchal (0.8 percent),
Punjab (0.7 percent) and Haryana (0.6
percent), highlights its paper.
“The CPSEs investment growth rate
was recorded at 9.05 percent in 2012-
13 on year on year basis as compared to
13.42 percent in 2011-12, 9.48 percent
in 2010-11 and 15.52 percent in 2009-
10”, adds the paper.
To be fair to them, the CPSEs managed
to rake in a smart growth in net profit
despite difficult years in the global and
domestic economy. Overall net profit of
all 229 CPSEs during 2012-13 stood at
Rs. 1.15 lakh crore compared to Rs. 0.98
lakh crore during 2011-12 showing an
increase of 17.36 percent.
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september 2014