Central public sector enterprises, which have a combined net worth of close to Rs 12 lakh crore, can boost India’s GDP by 2-3 per cent by leveraging funds and stepping up capital expenditure, Public Enterprises Selection Board (PESB) chairman Rajiv Kumar has said.
He also exhorted public sector firms to “rise to the occasion” and play their part in building an ‘Aatamanirbhar Bharat’.
Besides, with an aim to address the talent shortage and promote transparency in board-level appointments of central public sector enterprises (CPSEs), the PESB chairman has suggested numerous measures including creating wider talent pool, allowing lateral entry for candidates and offering level-playing field. For the last 5-6 years, CPSEs have been major investors in the economy as the private sector has been shying away from making fresh investment due to various reasons.
Pinning hopes on public sector undertakings, Finance Minister Nirmala Sitharaman earlier this month asked large CPSEs to achieve by next month 50 per cent of their planned capital expenditure target for FY21 to support economic growth in the backdrop of challenges posed by COVID-19.
While mentioning the significant role of CPSEs in giving a push to the growth of the Indian economy, the finance minister encouraged the CPSEs to perform better to achieve targets and to ensure the capital outlay provided to them for the financial year 2020-21 is spent properly and within time.
