|President Mukherjee during the SCOPE event|
PRESENTING the SCOPE Meritorious Awards for the year 2012-13 on November 5, President Pranab Mukherjee highlighted the importance of the public sector enterprises in strengthening the fundamentals of economy. Here are the key ten things...that Mukherjee outlined in his speech:
President compliments the Department of Public Enterprises (DPE) and Standing Conference of Public Enterprises (SCOPE) for organizing this event which provides recognition to the efforts being made by the CPSEs in a variety of areas such as environmental excellence & sustainable development; corporate governance; corporate social responsibility & responsiveness; research and development and technology development & innovation.
The Central Public Sector Enterprises were set up immediately after independence to occupy the commanding heights of the economy and to channelize investment in areas which were critical to our efforts at development and self-reliance.
The total investment in our 277 CPSEs stood at more than Rs. 8.5 lakh crores as on 31stMarch, 2013.
Operational CPSEs had a turnover of approximately Rs. 19.45 lakh crores, with the aggregate net profit of profit-making CPSEs amounting to Rs. 1.43 lakh crores during 2012-13. Market capitalization of 46 listed CPSEs stood at more than Rs. 11.16 lakh crores as on 31st March, 2013.
"These figures clearly demonstrate the pivotal role that the CPSEs play in our economy," said the President.
As envisaged at the time of their creation, they have proved to be the backbone of our developmental effort and are rightly recognized as drivers of growth in infrastructure and other critical sectors of the economy.
Govt steps to revitalize PSUs:
The Government has taken a number of steps to improve the functioning of CPSEs. These include empowerment of Boards of Maharatna, Navratna and Miniratna CPSEs, professionalization of Boards of CPSEs and strengthening of performance evaluation systems. These steps have contributed significantly in creating a positive and conducive policy framework for CPSEs.
Role of Make in India Campaign:
Today India stands at the cusp of a transformative phase which, the President said, will successfully place the nation in the league of developed nations over the next two decades. Here lies the true significance of Prime Minister’s ‘Make in India’ campaign which aims to transform India into a truly world-class, global manufacturing hub.
Make in India Campaign and PSUs:
The CPSEs have a vital role in making this campaign a reality. They have, over the years, established excellent manufacturing facilities in various parts of the country. India has one of the largest markets in the world and there is no dearth of demand for competitively priced, quality products. “We should aim not only at catering to our huge domestic demand but also towards high quality product development and greater access to foreign markets. This would not only create adequate employment opportunities for our youth but also raise standards of living across.”
Catering to domestic and external demands
The expansion of operations of PSUs will help to cater to both domestic and foreign markets can only come after making a realistic assessment of business potential and ensuring that our products conform to international standards.
PSUs must harness the latest technology both through suitable industry-academia linkages and by entering into strategic alliances with entities which possess these technologies.
It is also imperative that attention is focused on vendor development and mandatory procurement through small and medium enterprises. This would not only develop local industry but also boost domestic manufacturing and usher in a culture of entrepreneurship in the country.
PSUs must adapt to new scenario
An ever changing and dynamic business scenario throws up newer and complex challenges which call for innovative solutions. Over the years our CPSEs have developed a certain way of doing business. In today’s scenario it is critical to re-examine, re-engineer and reinvent processes in order to continuously stay ahead of market requirements and expectations. The President, accordingly, advised the PSUs to critically re-appraise existing systems and procedures and develop newer, more efficient ways of doing business with a view to taking full advantage of the latent potentialities that exist, both on the material and human front, in them.
Partnering the Govt
The CPSEs have actively partnered Government in implementing its social and economic policies. I am confident they will continue to take the lead in the ‘Swachh Bharat’ campaign and other socially oriented schemes being launched by the Government.
Custodians of wealth
The President pointed out that the CPSEs are custodians of public wealth and, as such, they necessarily need to ensure continued compliance with the best standards of corporate governance and transparency.
PSUs and CSRThe CPSEs have, over time, contributed greatly towards fulfilling their Corporate Social Responsibility obligations. He expressed the hope they will continue with these activities, designed for the uplift of needy sections of our society, in the future also as mandated under the Companies Act, 2013.