Performance of the Central Public Sector Enterprises

Abstract

There are inherent advantages in listing of shares of profitable CPSEs on the stock exchanges as it leads to multilayered oversight mechanism and provides a level playing field to CPSEs with the private sector vis-à-vis accessing resources through the capital market. Total turnover of all 220 operating CPSEs stood at Rs.14,73,319 crore as compared to Rs. 4,78,731 crore in the year 2001-02. During the period of the study (2001-02 to 2010-11) the turnover increased compound annual growth rate (CAGR) of 11.89%. The analysis of the Table (1) shows that during this period, Capital employed had been showing a continuously increasing trend. Capital employed increased from Rs. 389934 in 2001-02 crore to Rs. 949499 crore in 2010-11 with a compound annual growth rate of 9.31 %. Capital employed approximately tripled during this period.