Privatised CPSEs reported better profit, sales after transition: Survey
Most privatised CPSE witnessed improvement in net worth, profit, gross revenue and sales growth after the transition, the Economic Survey has said.
The survey, tabled in Parliament on Friday, examined the change in performance for each individual central public sector enterprises (CPSE). It studied the movement in major financial indicators for each of the firm ten years before and after the year of strategic disinvestment or privatisation.
Taken individually, each privatised CPSE witnessed improvement in net worth, net profit, gross revenue, net profit margin, sales growth in the post-privatisation period compared to pre-privatisation period except for Hindustan Teleprinters, MFIL and Tata Communications in the case of few indicators. it said.
Disinvestment improves firms' performance and overall productivity, and unlocks their potential to create wealth. This would have a multiplier effect on other sectors of the economy, according to the survey.
Aggressive disinvestment, preferably