CPSEs must take steps to unlock surplus resources: President

New Delhi: President Pranab Mukherjee today said state-owned firms need to take immediate steps to identify and unlock surplus land and other resources available with them to augment economic growth and boost job creation.

Mukherjee highlighted the significant role played by central public sector enterprises (CPSEs) in the country's development and noted that long-term growth prospects of the Indian economy continue to be positive.

He was speaking at a function organised by apex public sector body SCOPE here to mark the Public Sector Day.

The President advised state-owned firms to pool their resources to face the challenges posed by a globally integrated economy and said their exceptional human capital 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.

"CPSEs need to take immediate steps to identify and unlock the surplus land available with them as the same can be used in generating much needed public investments to boost the economy and increase employment opportunities.

"There is a similar need for identifying and unlocking the free surplus reserves which are available with our CPSEs so that the same may be utilised for undertaking enhanced capital expenditure," the President said.

Quoting data, Mukherjee observed that during 2014-15, public sector enterprises could register a growth of 7 per cent in paid up capital & 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 3 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 contribution of the PSEs in the nation's economy has, thus, continued to be significant year after year," he said.

Mukherjee noted that the Government remains committed to the India growth story and to progressive macro-level consolidation, both on the fiscal and monetary fronts.

"It is, therefore, incumbent on all of us, particularly the public sector, to continue to strive towards excellence with a view to fast-tracking the pace of economic development in the country," the President said.

Pointing out that CPSEs have played an important role in Swachch Bharat Abhiyaan, Mukherjee said: "The CPSEs may like to consider taking up a common cause or issue aimed at upliftment of the country under their CSR action plan every year.

This would possibly result in optimum utilisation of available resources while at the same time allowing CPSEs the flexibility to choose different common causes to be undertaken under CSR every year depending upon the broader thrust areas identified by the government, he said.