The recent unveiling of the 60th Public Enterprises (PE) Survey 2019-20 by the Department of Public Enterprises (DPE), Ministry of Finance, has drawn significant attention. This comprehensive survey provides wide-ranging data on Central Public Sector Enterprises (CPSEs), forming a foundational basis for informed policy making. In this respect, the government has even further streamlined operations by reassigning the DPE to the finance ministry from the Ministry of Heavy Industries.
The Public Enterprises (PE) Survey
As a 100% enumeration of the CPSE universe, the PE Survey collates crucial statistical data across various financial and physical parameters. It classifies CPSEs into five sectors: Agriculture, Mining & Exploration, Manufacturing, Processing & Generation, Services, and Enterprises Under Construction. The DPE initiated this survey in the fiscal year 1960-61 following recommendations from the Estimates Committee of the 2nd Lok Sabha, 73rd report (1959-60).
Understanding DPE and CPSEs
Serving as the nodal department for all CPSEs, the DPE shapes policy pertaining to these enterprises. By definition, CPSEs are Government companies or Statutory Corporations where the Central Government holds more than 50% equity. Subsidiaries registered in India also qualify as CPSEs. However, public enterprises run departmentally, banking institutions, and insurance companies are not considered CPSEs. These enterprises are further classified into Maharatna, Navratna, and Miniratna categories, with 10, 14, and 74 CPSEs respectively currently under these brackets.
Role and Vision of Central Public Sector Enterprises
CPSEs in India balance commercial efficiency with social responsibility. Beyond contributing to Government income, they uphold social obligations via their Corporate Social Responsibility (CSR) activities. Their conception aimed at addressing accumulated societal challenges including unemployment, rural-urban disparity, inter-regional and inter-class disparities, and technological backwardness. In view of self-reliant economic growth, CPSEs aim to develop the public sector as an effective instrument.
Historic Perspective of CPSEs
Prior to India’s independence, a handful of CPSEs existed, including the Railways, Post and Telegraph, Port Trusts, Ordnance Factories, etc. The majority were established post-independence, with the private sector lacking the capacity for large capital-intensive enterprises.
The Challenge for CPSEs
CPSEs face the formidable challenge of reconciling reasonable return on investment with their constitutional and social obligations.
Atmanirbhar Bharat Abhiyaan and CPSE Contributions
As part of Atmanirbhar Bharat Abhiyaan, or Self-Reliant India Campaign, CPSEs have undertaken several initiatives towards meeting the Government of India’s agenda. These initiatives span policy reforms, strategic partnerships, administrative actions, operational realignment, and capacity building. The five critical areas CPSEs target are: enhancing local capacity to support larger strategic objectives; encouraging cooperation within CPSEs for synergy exploration; offering a platform for greater participation of domestic firms/MSMEs; rationalising import dependency for long-term sustainability; and fostering development of indigenous technology while promoting technology transfer to CPSEs.
