Tuesday, September 9, 2014

Find how much slice the states get from the CPSE apple

THE Central Public Sector Enterprises (CPSEs) invested around Rs 5.5 lakh crore between 2008-09 and 2012-13, and imagine how many states get the lion's share? An ASSOCHAM study has noted that 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.
According to the study, 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).
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 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.
However, states that 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.
The CPSEs managed to rake in a smart growth in net profit despite difficult years in the global and domestic economy as the 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.
Reserves and surplus of all CPSEs grew from Rs. 6.23 lakh crore in 2011-12 to Rs. 6.81 lakh crore in 2012-13, showing an increase of 9.26 percent.
CPSEs' growth pattern suggests that on an average investment grew by almost 12 percent during 2008-09 to 2012-13.
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.
During the last five years the CPSEs invested Rs. 5.5 lakh crore.
Top 5 CPSE investment destination
1. Maharashtra (20 percent)
2. Andhra Pradesh (8.4 percent),
3. Tamil Nadu (8.1 percent),
4. Odisha (6.7 percent) and
5. Uttar Pradesh (6.2 percent)

Others in the list include: West Bengal (5.3 percent), Chhattisgarh (4.8 percent), Assam (3.9 percent), Madhya Pradesh (3.8 percent), and Himachal Pradesh (3.4 percent).  

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