PSUs Current Affairs - 2020

Public Enterprises Survey: Air India, MTNL, BSNL highest loss makings PSUs in FY19

On February 10, 2020, the Department of Public Enterprises operating under Ministry of Heavy Industries tabled the “Public Enterprises Survey” on the parliament. The report says that the net profit from the PSUs has increased by 15.5% as compared to the previous year.

Highlights

The survey said that Indian Oil Corporation, NTPC and ONGC were the top three profitable PSUs in 2018-19. On the other hand, MTNL, BSNL and Air India were the highest loss-making PSU. Also, the survey noted that these three PSUs have been making losses for three consecutive years.

The report also said that total income from Central Public Sector Enterprises (CPSE) in the year 2018-19 was 24 lakh crore rupees. It was 20 lakh crore rupees the previous year. There has been an increase of 4.67%

Relative performance

The enterprises such as MSTC, Chennai Petroleum Corporation and State Trading Corporation that were making profit last year (2017-18) incurred loss in the fiscal year 2019 (2019-19).

There are a total of 348 CPSEs. Out of these 249 are operational, 13 are under closure or liquidation and 86 are under construction.

High-Level Committee submits recommendations on Crude Oil Imports

A High-Level Committee constituted by Centre has submitted its recommendations to Ministry of Petroleum and Natural Gas on bringing down India’s dependence on crude oil imports.

Key Highlights

  • Composition: The High-Level Committee constituted by the Centre consisted of Dr Anil Kakodkar, an eminent Scientist and Sidharth Pradhan, an expert on financial and tax issues.
  • Purpose: The Committee was constituted to examine issues such as-
    • The preparation of action plan to create synergy among Research and Development (R&D) Centres of Oil and Gas Public Sector Undertakings (PSUs, like ONGC, IOC etc.), tax issues and ways by the Oil and Gas PSUs can benefit from GST.
    • It looked into acquisition, merger and consolidation of Oil and Gas PSUs and Joint Ventures (JVs).
    • It also explored the need and possibility of formation of a new entity that will deal with oil services and supply of qualified manpower to Oil and Gas sector around the world.
  • Recommendations: In its report submitted to Ministry of Petroleum and Natural Gas it recommended short term, medium term and long term strategies to reduce import dependency of the nation.
  • Significance: The Petroleum and Natural Gas Ministry will consider recommendations submitted by the Committee while formulating policies.