'Ulta chor kotwal ko daante': Nirmala Sitharaman attacks Rahul Gandhi over claims of PSUs being neglected

Finance Minister Nirmala Sitharaman on Wednesday took the Congress party and its Wayanad MP Rahul Gandhi to task over their claim that public sector undertakings (PSUs) are being dismantled and are in disarray under the BJP-led Central government. Calling their claims an example of 'ulta chor kotwal ko daante' or pot calling the kettle black, Sitharaman said in a lengthy post on X (formerly Twitter) that facts reveal a picture vastly different from what the Congress constantly tries to portray. 

She said that PSUs including Hindustan Aeronautics Ltd. (HAL) have suffered under the Congress-led UPA government. Sitharaman said the PSUs which were neglected under the Congress-led Central government are seeing a revival under the Modi government.

While addressing an election rally in Chhattisgarh, the Gandhi scion challenged BJP leaders to pledge that they will not privatise PSUs and end the system of contract workers. "Under the leadership of PM Narendra Modi, PSUs are thriving, benefiting significantly from the culture of professionalism infused in them along with increased operational freedom. Modi Govt's focus on capital expenditure has also led to substantial growth in their stock performance," Sitharaman said. 

Elaborating on the initiatives taken under the Modi government to revive the PSUs, Sitharaman said that the greater alignment of manufacturing initiatives, capital management guidelines on dividends, buybacks, etc. and the calibration of the disinvestment strategy have helped in improving the performance of CPSEs. She also said that the BJP government's focus on developing infrastructure has directly benefitted PSUs in railways, roads, power, metals, construction, heavy equipment manufacturing and other sectors. 

She also said that the increased spending in defence and focus on 'Atmanirbharta' in the sector has led to the growth of PSUs like BEL, HAL and Mazagaon Dock among others. "In FY 2023-24 alone, India has reported arms exports worth ₹21,000 crore. This achievement showcases our government's robust confidence in our scientists and engineers, a stark contrast to @INCIndia’s approach," Sitharaman said. 

Citing figures, Sitharaman said that the current dispensation's initiatives have helped public sector banks (PSBs) recover from the banking crisis before 2014. "GNPAs in PSBs have fallen to decadal lows of 3.2 per cent and profits are at record highs, even as the push to financial inclusion brings formal banking to every corner of the country," she said. 

She added that due to improved management of PSUs, their share prices have increased multifold in the last three years. Total market cap of all 81 listed PSUs-- including 62 CPSEs, 12 PSBs, 3 public sector insurance companies and IDBI Bank-- has grown by a whopping 225 per cent. "Returns by NIFTY CPSE of nearly 78.8% have significantly outpaced NIFTY 500 (27.4%) and NIFTY 50 (22.5%)," the Finance Minister mentioned.

Sitharaman furthermore mentioned that the market cap of 12 listed PSBs has increased 195 per cent from Rs 5.45 lakh crore as of March 31, 2021 to Rs 16.12 lakh crore as of March 31, 2024. "Notably, 15 CPSEs have experienced an impressive CAGR ranging from 76% to 100%, reflecting substantial value appreciation and investor confidence. Additionally, 25 CPSEs have demonstrated strong growth with CAGR ranging between 51% to 75%, while 28 CPSEs have shown steady expansion within the range of 26% to 50%," Sitharaman said. 

She further took Rahul Gandhi to the cleaners over his attack on HAL. Sitharaman said that under Prime Minister Narendra Modi, HAL's market valuation has grown by 1,370 per cent in merely 4 years from Rs 17,398 crore in 2020 to Rs 2.5 lakh crore as of May 7, 2024. "HAL on 31st March 2024 announced its highest-ever revenue of more than ₹29,810 crore for FY 2023-24 and has a robust order book of over ₹94,000 crore. These figures hardly suggest a 'weakening' institution but rather one experiencing significant fortification," she said.