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Little headroom for PSUs to invest

Non-oil PSUs have seen a sharp jump in their indebtedness in past three years while capacity utilisation remains low

Krishna Kant  |  Mumbai 

The government’s move to take the public sector route to kick-start the capex cycle in the economy may not yield the desired results, analysts say. That’s because of the poor finances of non-oil PSUs and excess capacity in most of the sectors where these firms operate. “This idea has been floated in the past but it’s neither feasible nor desirable from an economic point of view. PSUs are not in a financial position to make large investments, given their poor financial ratios and low-single digit returns,” said Dhananjay Sinha, head of research, Emkay ...

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First Published: Fri, September 29 2017. 02:07 IST
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