India's Best Public Sector Undertakings 2019
PSUs Continue To Soar High!
Dalal Street Investment Journal is pleased to bring you the much-anticipated DSIJ PSU Awards. Since 2009, the birth year of this flagship issue, we have identified the efforts and the brilliant achievements of the PSUs in India and we yet again present to you our celebrated PSU Journal. Public sector undertakings (PSUs) are considered to play a significant role in the development of the Indian economy. These are government-owned corporations wherein 51 per cent or more of the paid share capital is held by the central government or by any state government or partly by the central government and partly by one or more state governments.
Thus, several PSUs continue to regularly provide tremendous employment opportunities in various technical and management areas. India’s gross domestic product (GDP) was estimated to be Rs 145.65 lakh crore, which is around USD 2.06 trillion, for 2019-20. As a result of the impact of the pandemic, in October 2020, the International Monetary Fund (IMF) projected a GDP contraction of 10.3 per cent in FY21 for India while global growth is expected to witness a contraction of 4.4 per cent for the same period. In 2018-19, the revenue of operating central public sector enterprises (CPSEs) was reported to be Rs 25.43 lakh crore, which was an increase by 18.03 per cent compared to that of Rs 21.55 lakh crore in the previous year.
In 2020, as part of the ‘self-reliance’ package, the Government of India announced its decision to have four public sector companies in strategic sectors while eventually privatising state-owned firms in other segments. For the PSU sector to flourish well, several initiatives have been undertaken. The MSCI recently announced considering changes in the foreign ownership limits in the MSCI global indices for Indian stocks. PSU companies stand to hugely benefit from this change wherein the individual FII limit is 50 per cent and the sector limit is 74 per cent. Further, according to the MSCI, 74 per cent will be considered as a free float.
As PSUs continue to play a vital role in various fields, we had the pleasure to interact with some of India’s foremost business leaders who have shared their precious opinions with our readers. We have special respect for the business leaders of valuable PSU corporations as they strive to maintain a positive growth trend for their respective corporations even in such difficult times of the pandemic wherein many have faced big hurdles. As years come, we hope to see the PSUs reaching their full potential and hogging the limelight with their performance. I also take this opportunity to thank the participants and also our avid readers for being able to present to you the PSU special issue. With your valuable support as our backbone, we will continue to strive to present you relevant information in coming years as well.
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