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278 Economic Survey 2021-22

Rs. 93,295 crore Contribution of all CPSEs to central exchequer by way of excise duty, GST,
corporate tax, dividend, etc. stood at Rs. 3,76,425 crore. The CPSEs across sectors employed
14,73,810 persons, of which 9,21,876 were regular employees. There were 58 listed CPSEs as
on 31.03.2020 with market capitalization of Rs. 8.2 lakh crore. In 2021-22 till 31st Oct, 2021,
2021-22 CPSEs incurred capital expenditure of Rs. 1,06,749 crores against the annual target of
Rs. 2,69,742 crore. During 2020-21, a total expenditure of Rs. 2,04,243 crore was incurred as
CAPEX against a projected expenditure of Rs 2,20,249 cr.

8.17 In accordance with Union Budget 2021-22 announcement, the government has
approved a policy of strategic disinvestment of public sector enterprises that will provide
a clear roadmap for disinvestment in all non-strategic and strategic sectors. The guideline
for implementation of new public sector enterprise policy for CPSEs have been notified on
13 December, 2021. This will help the government to make use of disinvestment proceeds
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to finance various social sector and developmental programmes while disinvestment shall
infuse private capital, technology and best management practices in the disinvested CPSEs.
The Government notified the new Public Sector Enterprise (PSE) Policy on 4 February 2021.
The new PSE Policy envisages classification of CPSEs into Strategic and Non-Strategic
Sectors and exempts certain CPSEs such as those setup as not-for-profit companies under the
Companies Act, 2013 or those supporting vulnerable and weaker sections of society, from the
scope of the Policy. The strategic sectors as per the policy are as under: atomic energy; space
and defense; transport and telecommunication; power; petroleum; coal and other minerals;
banking, insurance, and financial services. Under the 4 broad baskets in which the strategic
sectors are classified-i.e., national security, critical infrastructure, energy and minerals and
financial services- only a bare minimum presence of CPSEs in the aforesaid strategic sectors
is to be maintained. The non-strategic CPSEs will be privatized or otherwise shall be closed.
Thus, the policy on public sector enterprises provides a clear path for disinvestment in all non-
strategic and strategic sectors and strengthens the idea of Minimum Government - Maximum
Governance
Corporate performance

8.18 With economic recovery, concomitant improvement in demand and improved
business sentiments have had a positive effect on the performance of corporate sector.
Further, in response to favourable base effect, sales of 1,687 listed manufacturing
companies recorded steady and broad-based growth of 34.0 percent inQ2:FY22 as
compared to (-)4.3 percent growth in Q2:FY21, on an annual (y-o-y) basis. Expenditure
in these companies also increased by 38.3 percent in Q2:FY22 as compared to a decrease
of 7.7 percent in Q2:FY21. The net profit to sales ratio of these companies was increasing
despite the pandemic shock to reach a level of 10.6 percent in Q2:F22 reflecting better
profit prospects for these companies in the current financial year. The improvement in
profitability of large corporates on the whole indicates that the companies withstood the
pandemic shock well and many have rebounded.