PSUs have done brilliantly under Modi Govt, profits up 87% in 10 years, shares rise tremendously.

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New Delhi:

Amidst the Lok Sabha Elections 2024, PSUs i.e. Public Sector Undertakings are once again in the news. Prime Minister Narendra Modi also mentioned this in an exclusive interview to NDTV. In particular, shares of Hindustan Aeronautics Limited (HAL) rose to record highs.

In an exclusive interview to NDTV Editor-in-Chief Sanjay Puglia, PM Narendra Modi said, after the June 4 results, the Sensex will swing so much that even stock market programmers will get tired. PM Modi said that in his 10 years tenure, Sensex has made a great journey from 25 to 75 thousand.

What is a Public Sector Undertaking (PSU)?

Public Sector Undertakings (PSUs) are government-owned units, which contribute greatly to the economic development of the country. The full form of PSU is Public Sector Undertaking or Public Sector Unit. It is also called Public Sector Enterprise i.e. PSE. PSUs are companies or entities in which the government owns 51% or more. This means that the government plays an important role in the management and decision making of these companies.

PSU companies in India are divided into Central Public Sector Enterprises (CPSE), Public Sector Banks (PSB) and State Level Public Enterprises (SLPE). It includes companies like Indian Railways, Indian Post, Bank of India, State Bank of India, Oil and Natural Gas Corporation (ONGC), Bharat Heavy Industries (BHEL), Hindustan Aeronautics Limited (HAL).

HAL has made a profit of 4 thousand crore rupees in the fourth quarter

Speaking to NDTV, Prime Minister Modi said where the shares of Public Sector Undertaking (PSU) companies have reached. Earlier this stock was supposed to fall. However, now their prices are increasing in the stock market. He said, “Look at HAL, for which they (the opposition) took out a procession. An attempt was made to incite the workers. Today HAL has made a record profit in the fourth quarter. HAL has made a profit of Rs 4 thousand crores. HAL has never made such a profit in its history. Didn’t.”



In the last 10 years, the PSU’s profits have increased by 87% due to the efforts of the Modi government.

Earlier, Finance Minister Nirmala Sitharaman also said in one of her tweets that the current government has worked to revive public sector enterprises. Due to the efforts of the Modi government, the total net profit of Public Sector Undertakings (PSUs) has increased by 87% between 2013-14 to 2022-23.

This means that the total net profit of these PSUs in 2013-14 was Rs. 1.29 lakh crore, which in 2022-23 will increase to Rs. 2.41 lakh crores. This means that PSU profits have more than doubled in these 10 years.

The total market cap of all 81 listed PSUs has grown by 225% in the last 3 years

The Finance Minister said that share prices of Public Sector Undertakings (PSUs) have increased tremendously in the last 3 years. The main reason is better management. The total market cap of all 81 listed PSUs (which includes CPSEs, PSBs, public sector insurance companies and IDBI Bank) has grown by 225% in the last 3 years.

At the same time, 12 listed public sector banks (PSBs) have fared better. Their market cap as on March 31, 2021 was Rs. 5.45 lakh crore, which on March 31, 2024 increased to Rs. 16.12 lakh crores, which represents an increase of 2.95 times (195%).


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