PSUs making returns for shareholders, stocks touching new highs: PM Modi

PM Modi on Republic: In an exclusive interview with Republic Media Network's Editor-in-Chief Arnab Goswami, Prime Minister Narendra Modi underlined the unforeseen rise of India’s Public Sector Undertaking (PSU) stocks, driven by strong fundamentals, clear future projections, and Modi government’s policy of no interference. 

Prime Minister Modi said, “The shares of the government companies suffered a steep six per cent decline during the UPA II (2009-2014) government but under his leadership, the government enterprise stocks are reaching new highs.”  

The S&P BSE PSU Index, the stock market index which tracks the performance of government-owned companies, have given more than 168 per cent returns to its investors despite strong global economic turmoils. Bharat Electronics, a government-owned aerospace and defence electronics company, has given more than 16 per cent returns in the last 10 years of the Modi government followed by ITI Limited, giving more than 15.5 per cent returns in the same period. 

National Buildings Construction Corporation (NBCC), a public sector undertaking company under the Ministry of Housing and Urban Affairs, has given more than 650 per cent returns along with SJVN and HPCL, whose five-year returns lie between 250 per cent and 100 per cent. 

Prime Minister also underlined the substantial rise in the market capitalisation of the government enterprises. “In 2014, the gross revenue of the Public Sector Undertaking (PSUs) was Rs 20 lakh crore and today it stands at Rs 38 lakh crore, nearly doubling in the last 10 years. The net worth of government companies in 2014 was worth Rs 9 lakh crore and today they are worth more than Rs 80 lakh crore driven by a staggering 225 per cent increase in the market capitalisation of these companies amid global economic instability,” PM Modi noted.