Business Standard

Mining firms fare better than others

The consolidated turnover of public sector companies in the mining sector increased 17.7 per cent in 2011-12

BS Reporter  |  New Delhi 

State-owned mining companies have outperformed other industrial public sector companies in 2011-12 in terms of net profit growth, the Economic Survey showed.

Coal India Ltd, the country's largest miner, and NMDC Ltd registered consolidated growth of 29.45 per cent in net profit at Rs 61,610 crore during the year ended March 2012, from Rs 47,595 crore in the previous year.

A shift to the globally accepted gross calorific value system of pricing, coupled with increased spot sales through e-auction, helped Coal India jack up profit. NMDC increased prices in the domestic market frequently, giving a push to its net profit. The consolidated turnover of public sector companies in the sector increased 17.7 per cent in 2011-12 to 1,88,011 crore.

Investments from industrial central public sector enterprises (CPSEs) to total investment in CPSEs, in terms of gross block, stood at 77.46 per cent during 2011-12. Of this, manufacturing contributed 28.31 per cent and mining and electricity 23.53 per cent and 25.62 per cent, respectively.

According to the Survey, the net profit of public sector companies in the electricity sector rose 13.4 per cent to Rs 21,240 crore in 2011-12. Consolidated sales of such companies increased 16.2 per cent to Rs 97,623 crore during the year.

However, the net profit of CPSEs in the manufacturing sector declined 22.7 per cent in 2011-12 to Rs 23,720 crore from Rs 30,668 crore the previous year. This is despite 27.73 per cent increase in turnover.

During 2011-12, the government raised Rs 40,000 crore through disinvestment of its shares in various state-owned companies including Oil and Natural Gas Corp Ltd, it added.

The government said it would mop about Rs 27,000 crore through divestment drive in the current financial year against the targeted Rs 30,000 crore. So far this financial year, it has garnered Rs 21,500 crore through disinvestment.

First Published: Thu, February 28 2013. 00:32 IST