PRESIDENT Pranab Mukherjee gave away the 7th SCOPE Excellence Awards in a function jointly organised by the Standing Conference of Public Enterprises (SCOPE) and the Department of Public Enterprises (DPE), in New Delhi.
Mukherjee said the public sector has grown exponentially since Independence in all metrics of measurement, be it in terms of numbers, diversification, volume of investment or global presence. These achievements become even more significant when viewed in the backdrop of lack of capital and entrepreneurship skills in early years of post-independent India, reluctance of private players to set up capital intensive industries with a long gestation period and the need for generating employment and ensuring country’s balanced socio-economic and regional development. It is a truism that at most times, early on, the profit motive was eschewed in preference to the broader objective of overall societal development.
The President said, as per available data, during 2014-15 PSEs could register a growth of 7 per cent in paid-up capital and capital employed, 10.5 per cent in total investment and 20 per cent in total market capitalisation as compared to the previous year. On an average, during the last three years—from 2012-13 to 2014-15—operating PSEs could earn an overall net profit of Rs. 1,15,426 crore, generate gross turnover/ revenue of Rs. 20,02,591 crore and pay dividend of Rs. 57,115 crore. The PSEs’ contribution in the nation’s economy has, thus, continued to be significant year after year.
Referring to the Prime Minister and the government’s outlined vision for the inclusive development of the country, the President said, programmes like ‘Make in India’, ‘Skill Building’, ‘Digital India’ and ‘Swachch Bharat’ are the cornerstones for the future development of India. He expressed noted PSEs’ contributions towards these national priority areas.
The President said the Budget has drawn attention to the need for unlocking the wealth of CPSEs for greater economic activity. CPSEs need to take immediate steps to identify and unlock the surplus land available with them as the same can be used in generating the much-needed public investment to boost the economy and increase employment opportunities. There is a similar need for identifying and unlocking the free surplus reserves available with the CPSEs so that they may be utilised for undertaking enhanced capital expenditure.
He said, to face the challenges of a globally integrated economy, it is equally essential that our CPSEs collaborate and pool their resources to face and overcome competition. The financial, technical and manpower resources of our CPSEs need to be shared to enable better and more optimal solutions in increasingly customer-driven markets. The exceptional human capital available with CPSEs should be harnessed to develop suitable strategies and interventions, which lead to improvement in performance and expansion of operations, both in domestic and global markets.
A Luikham, Secretary, DPE, said that government patronage was available for every challenge, be it the challenge of corporate governance or achieving the target of booked orders; challenge of increasing production and productivity or timely up gradation of technical and commercial aspects. RG Rajan, Chairman, SCOPE, and Dr UD Choubey, Director General, SCOPE, highlighted the new initiative of SCOPE to establish a Public Sector Academy that would provide integrated training and capacity building to the critical mass in PSEs, which, in the long run, shall develop a cadre of public sector professionals in line with All India Services.
ONGC was set up under the visionary leadership of Jawahar Lal Nehru. Pandit Nehru reposed faith in Keshav Dev Malviya, who laid the foundation of ONGC in the form of Oil and Gas division, under the Geological Survey of India, in 1955. A few months later, it was converted into an Oil and Natural Gas Directorate. Today, Oil and Natural Gas Corporation Ltd is leader in Exploration & Production (E&P) activities in India with a 70 per cent contribution to India’s total hydrocarbon production. ONGC has established more than 9 billion tonnes of in-place hydrocarbon reserves in the country. Six out of seven producing basins in India have been discovered by ONGC. ONGC produces more than 1_20 million Barrels of Oil Equivalent (BOE) per day.
BPCL came into existence in January 1976 when Burmah-Shell was taken over by the Government of India. A Fortune Global 500 Company, BPCL is one of the premier integrated refining and marketing companies in India. BPCL’s vision is to be the most admired global energy company, leveraging talent and technology. In the prestigious Fortune Global 500 list for 2015, BPCL stands fifth among Indian companies, with a rank of 280. The company’s refineries at Mumbai and Kochi, subsidiary Numaligarh Refinery Ltd at Assam and joint venture Bina Refinery at Madhya Pradesh have a combined refining capacity of over 30 MMT.
Hindustan Petroleum Corporation Limited is a Navratna PSU, Fortune Global 500 Company ranked at 327 and a Platts top 250 global energy company ranked at 133, having a strong presence in downstream oil refining and marketing in India. The gross sales during 2014-15 was Rs. 2,17,061 crore. The company caters to about 21 per cent of India’s petroleum product demand. HPCL owns and operates coastal refineries at Mumbai and Visakhapatnam. It also owns the largest Lube Refinery in the country having a capacity of 428 TMTPA, accounting for 40 per cent of the country’s Lube Oil Base stock production. A 443-km long pipeline, from Rewari in Haryana to Kanpur in UP, was commissioned in 2015-16 taking the cross country pipeline network of HPCL to 3,015 km.
SJVN Limited, a Mini Ratna company, was incorporated on May 24, 1988, as a joint venture of the Government of India (GoI) and the Government of Himachal Pradesh. SJVN is now a listed company having shareholders pattern of 64.46 per cent with GoI, 25.51 per cent with Government of Himachal Pradesh and rest 10.03 per cent with the public. The present net worth of the company is Rs. 10, 203.04 crore. Beginning with a single project and single State operation—India’s largest 1500 MW Nathpa Jhakri Hydro Power Station in HP—the company is presently implementing hydroelectric projects in HP, Uttarakhand, and Arunachal Pradesh in India besides neighbouring countries of Nepal and Bhutan. The present installed capacity of SJVN is 1,959.6 MW, comprising of 1,912 MW Hydro plus 47.6 MW wind power. The total income of the company for FY 2014-15 was Rs. 3,261.10 crore. During current year, up to December 2015, SJVN turnover and net profit are Rs. 2,570.78 crore. and Rs. 1,261 crore, respectively.
THDC India Limited, a Mini Ratna, is a joint venture of the Government of India and Government of Uttar Pradesh. The company was incorporated in July 1988 to develop, operate and maintain the 2,400 MW Tehri Hydro Power Complex and other hydro projects. The company has an authorised share capital of Rs. 4000 crore. The total installed capacity of THDCIL presently is 1400 MW and has two generating stations—Tehri Stage-I (4X250 MW) and Koteshwar HEP (4X100 MW). The Tehri Power Station was commissioned in 2006-07. It is a multipurpose project providing electricity to the northern region, irrigation benefits to Uttar Pradesh and drinking water to NCT of Delhi and UP. Due to regulated releases from the Tehri storage reservoir, the existing downstream hydro projects of the State are also benefiting by way of augmentation in generation at no additional cost to them.
WAPCOS Limited is a Mini Ratna company under the aegis of the Ministry of Water Resources, Ganga Rejuvenation and River Development. Incorporated on June 26, 1969, WAPCOS has been providing consultancy services in all areas of water resources, power and infrastructure sectors in India and abroad. In recent years, WAPCOS achieved high profitability, secured business in new areas/regions and received appreciation from clients in India and abroad. Highlights of its key achievements are: its gross income increased to Rs. 928.30 crore; profitability increased to Rs. 111.05 crore; new business worth Rs. 1375.92 crore procured; turnover per employee reflecting productivity of the company grew to Rs. 130.65 lakh; net-worth of the company increased to Rs. 309.31 crore; and, paid dividend of Rs. 16.50 crore for the year 2014-2015, highest in the history of the company.
IREDA has been maintaining its leadership position in renewable energy (RE) space and developing several innovative financial schemes/solutions for meeting the market requirement. It has an excellent track record of financing more than 2,200 clean energy projects in the country with cumulative loan sanctions of more than Rs. 38,000 crore and disbursements over Rs. 20,900 crore. It has been a profit-making company since its inception. The current installed RE capacity in India has reached more than 39,500 MW, contributing about 14 per cent in country’s installed capacity of 288 GW. Proactive efforts by IREDA have enabled commercialisation of renewable energy sector in India, resulting in active participation from domestic commercial banks, international funding agencies and FDI, enabling the sector to attain a critical mass.
FORMED on March 6, 2001, NTPC-SAIL Power Company Private Ltd (NSPCL), a 50:50 joint venture of NTPC Ltd and SAIL, is a success. The company is not only meeting the electricity requirements of SAIL but also supplying power to some Discoms to reduce the demand-supply gap of the country. The initial objective of the company was to takeover and reliably operates two captive power plants of 120 MW (2×60 MW) each, located at Durgapur Steel Plant and Rourkela Steel Plant of SAIL. NSPCL has been continuously earning profit since its inception. Turnover of the company has grown to Rs. 2,326 crore in FY 2014-15. During the same period, PAT of the company has increased to Rs. 227.41 crore at a CAGR of 17.98 per cent. To improve system efficiency, NSPCL implemented ERP/SAP across the organisation in July 2014.
BEML Limited, incorporated in 1964, is a Mini-Ratna PSU, under the Ministry of Defence engaged in the design, development, manufacturing and after-sales service of a wide range of products for core sectors of economy such as coal, mining, steel, cement, power, irrigation, construction, road building, defence, railway, metro transportation system and aerospace. It has four manufacturing complexes located at Bengaluru, Kolar Gold Fields (KGF), Mysuru and Palakkad and a subsidiary steel foundry—Vignyan Industries Ltd—in Tarikere, Chikmagalur District. It registered sales with ED of Rs. 23120 crore, posting a growth of 4 per cent over the previous year. It was conferred with Raksha Mantri Award in recognition of its ‘Design Effort’ for design and development of country’s first Stainless Steel Electric Multiple Unit (SSEMU) for Indian Railways, to be used for suburban commuting.
ENGINEERS India Ltd (EIL) a Navratna PSU, is one of the leading design and engineering organisations in South Asia. Established in 1965, EIL provides engineering consultancy and EPC services, principally focused on the oil and gas and petrochemical industries. The company has also diversified into sectors like infrastructure, water and waste management, solar and nuclear power and fertilisers to leverage its strong technical competencies and track record. Today, EIL is a ‘Total Solutions’ engineering consultancy company, providing design, engineering, procurement, construction and integrated project management services from ‘Concept to Commissioning’ with highest quality and safety standards. EIL’s QMS, OHSMS and EMS are certified to ISO 9001, OHSAS 18001 and ISO 14001, respectively. It also provides specialist services like heat and mass transfer equipment design, environmental engineering and plant operations and safety.
HINDUSTAN Aeronautics Limited, a Navratna category Central PSU, is a premier Aerospace Company with 20 production/overhaul divisions and 11 co-located R&D centres across the country. HAL’s spectrum of expertise encompasses design and development, manufacture, upgrade and repair/ overhaul of aircraft (fighters, trainers and transport), helicopters and associated aero-engines, accessories and avionics for both military and civil applications. HAL has diversified into portfolios like manufacture of structures for Aerospace Launch Vehicles/Satellites and Cryogenic Engines. It is also involved in the production and overhaul of marine and industrial gas turbine engines. HAL has emerged as a globally competitive aerospace company, with supplies of major structural assembly packages and large volumes of machined components to leading aerospace companies like Airbus and Boeing.
NEYVELI Lignite Corporation Limited, a Navratna Enterprise, has a history of achievements since its inception in 1956. A pioneer among the PSUs in the energy sector, NLC operates three opencast lignite mines at Neyveli and one opencast lignite mine at Barsingsar, Rajasthan. It also operates three thermal power stations with a total installed capacity of 2,490 MW at Neyveli and one at Barsingsar with an installed capacity of 250 MW. All the mines of NLC are ISO certified. NLC has been earning profit right from 1976-77 and it has achieved a profit (after tax) of Rs. 1411.33 crore in 2011-12. NLC paid a dividend of 28 per cent on paid up capital for 2011-12. Its net worth, as on March 31, 2012, is Rs. 11989.57 crore and turnover, including other income, exceeds Rs. 5600 crore.
NATIONAL Seeds Corporation Limited (NSC) is a Government of India Undertaking under the Ministry of Agriculture and Farmers Welfare. It came into existence in 1963 when India was facing acute shortage of food grains. It became the harbinger of Green Revolution. As a result, India became a food grain surplus country. Starting with production of 30-40 tonnes of Maize Foundation Seed, NSC today produces more than 1.6 lakh tons of certified/quality seeds per year, covering 580 varieties of 60 crops and hybrids of cereals, millets, pulses, oilseeds, fodders, fibers and vegetables. NSC acts as price stabiliser in the market. After SFCI-NSC merger on 2014, NSC has 55,000 acres of land and 44 seed processing plants with a capacity of 22 lakh quintal seeds.
INCORPORATED in 1972, ALIMCO, working under the aegis of Government of India, Ministry of Social Justice and Empowerment, is a unique organisation in the world engaged in the production and distribution of cost-effective assistive devices/ artificial limbs for persons with disabilities of all categories—orthopedically, hearing, visually, leprosy and intellectually impaired. Better corporate governance at ALIMCO aims not only at maximising surplus and become a cash cow, but it has linked its goals to welfare of poor and needy. The financial performance of the Corporation during 2014-15 resulted in a surplus of Rs. 31.65 crore, as compared to Rs. 31.47 crore in the preceding year. In 2014-15, ALIMCO covered more than 1,96,000 beneficiaries across the nation by conducting more than 1,500 camps under various government schemes.
GAIL (India) Limited was incorporated in 1984 as a Central PSU under the Ministry of Petroleum and Natural Gas, with the Mission of “accelerating and optimising the effective and economic use of natural gas and its fractions for the benefit of national economy”. GAIL has played a crucial role in the development of Indian gas sector. It’s the flagship natural gas company of India, having a presence across the entire gas value chain. This integrated gas major has over 11,000 km of natural gas trunk pipelines across 16 States, two LPG pipelines 2,038 km long, six gas processing plants across India with combined Liquid Hydrocarbon production capacity of 1.3 MMTPA and 810 KTPA gas-based petrochemical plant in Uttar Pradesh. GAIL is co-promoter of two other petrochemical projects, the 280 KTPA BCPL complexes in Assam and 1.1 MMTPA OPaL project in Gujarat.
GOA Shipyard Limited (GSL), a public sector shipyard, has played a significant role in furthering the self-reliance policy of the nation. With an unmatchable track record of timely execution and fixed cost delivery of over 215 ships and 125 Fast Interceptor Boats, GSL today stands as the success story of the changing face of Indian defence shipyards. The company has achieved nearly 40 per cent growth in the last two years with the bottom line turning positive from a loss of Rs. 61 crore in 2013-14 to a net profit of Rs. 77 crore in 2014-15. The yard designs and builds amongst the best patrol vessels in the world in terms of quality, aesthetics, and cost and delivery time. It is the only shipyard in the country engaged in the entire design spiral of ships, leading from concept design to basic design to detailed Design. GSL has an export order book of over Rs. 1,200 crore and has diversified product range, including OPVs, FPVs, missile boats, survey vessels, LCUs, tugs, etc.
PETRONET LNG has emerged as one of the brightest stars in the Indian hydrocarbon sector and is constantly working towards fulfilling the energy requirement of the nation. A joint venture company of three Maharatna and one Navratana oil and gas companies—ONGC, IOC, GAIL (India) Ltd and BPCL, respectively—it was incorporated on April 2, 1998, to import LNG and set up LNG terminals in the country. Petronet LNG has introduced an innovative practice by supplying LNG through specialised cryogenic tankers to such industries which are not directly connected to the gas network. The company has been constantly pursuing business opportunities in other areas of LNG value chain so as to achieve synergy in its business activities and create better value for its stakeholders. The company’s net profit as on March 31, 2015, stood at Rs. 882 crore.
CEMENT Corporation of India Limited (CCI) was established in 1965 as a wholly-owned Government of India Enterprise. Its principal objective was achieving self-sufficiency in cement production. CCI was the first cement company to establish cement plants in remote localities all over the country. Over the years, it established 11 cement plants spread across the length and breadth of the country and with 42.48 lakh MT capacity and an authorised capital of Rs. 900 crore. CCI was the first cement manufacturer to bring dry process precalcinator technology in India in 1980s. The company recorded a five-year high turnover of Rs. 449.54 crore and net profit of Rs. 40.08 crore in 2014-15.