CPSEs have outperformed benchmark indices; market cap increased 3.61 times in last three years

Ministry of Finance posted on X, "The CPSE indices have outperformed the benchmark indices in the stock market during the past three years (07-10-21 to 07-1024)"

The total market cap of listed CPSEs has gone up by 3.61 times in the last three years from Rs 12.10 lakh crore on 31.3.2021 to Rs 43.65 lakh crore as on 11.10.2024.

The BSE CPSE Index surged by 157.22 per cent, compared to only 38.68 per cent rise in the Sensex, while the NSE CPSE Index climbed by 185.79 per cent, outpacing the Nifty 50's 40.72 per cent growth.

This indicates the government's comprehensive approach of not only enhancing the performance but also the value of the Central Public Sector Enterprises (CPSEs).

Ministry of Finance posted on X, "By ensuring holistic value creation in Central Public Sector Enterprises #CPSEs, @SecyDIPAM ensures performance enhancement, #CAPEX growth, and trust-based asset creation for investors."

As part of this strategy, the government is focused on aligning management incentives with organisational goals to boost the overall performance of CPSEs.

CPSEs are being empowered to operate more efficiently and effectively, ensuring that they contribute significantly to the economy while meeting the expectations of stakeholders.

To support growth, CPSEs are making substantial investments exceeding Rs3 lakh crore annually in capital expenditure (CAPEX).

This initiative is aimed at driving enterprise growth, strengthening infrastructure, and creating long-term value for the economy. Additionally, these enterprises are encouraged to reward shareholders with consistent dividends while retaining sufficient resources to fuel future investments and expansion plans.

Over the last three years, dividend receipts from CPSEs have gone up from Rs 39,750 crore in 2021-22 to Rs 63,749 crore by 2023-24.

A calibrated disinvestment strategy is also being implemented. This includes listing CPSEs through Initial Public Offerings (IPOs) and gradually diluting minority stakes in alignment with the interests of shareholders.

This approach has not only enhanced market trust in CPSEs but also aligns their operations with broader economic objectives.The government's emphasis on value creation ensures that CPSEs generate benefits for their employees, shareholders, and the economy at large. (ANI)