Question : CAPITAL HOLDINGS OF PSUs



(a) whether the public sector undertakings have huge capital which is not being directly invested in the production work;

(b) if so, the quantum of the capital with these undertakings by the end of March, 2011;

(c) the average annual growth rate of this capital during the last three years;

(d) whether the Government have prepared any policy to invest this extra capital again in the production; and

(e) if so, the details thereof?

Answer given by the minister



THEMINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)

(a) to (e): The total capital holdings in Central Public Sector Enterprises (CPSEs) in terms of ‘net worth’ and their annual growth rates during the last three years are shown below (Table 1):
Table 1.

(Rs. incrore)
Years Net worth Growth rate (%) Net Fixed Assets Growth rate (%) (+ capital-work- in Progress)
2009-10 660245 12.53 677450 18.74 2008-09 587286 12.74 570513 16.29 2007-08 520923 14.71 490615 11.91
Source: Public Enterprises Survey (2009-10).


Table 1.also shows the net fixed assets (+ capital-work-in progress) or the investments made in CPSEs during the last three years. Both these figures are very close to each other in absolute values as well as in terms of growth rates.

Utilisation of capital holdings by the enterprises (CPSEs), moreover, depends upon their corporate plans, market conditions and the best judgment of their respective managements / Board of Directors.