Union finance minister Nirmala Sitharaman on Wednesday shot back at the Congress and its leader Rahul Gandhi over their repeated claims that public sector undertakings (PSUs) were being dismantled and were in disarray under the Narendra Modi government. In a post on social media site X, the minister said the Congress allegations were a textbook example of “Ulta chor kotwal ko daante (The pot calling the kettle black)” as the facts revealed a very different picture.

In her comprehensive article posted on the site, Sitharaman wrote that the PSUs suffered under the Congress-led United Progressive Alliance (UPA) government. The PSUs that were previously neglected under the UPA regime, such as Hindustan Aeronautics Limited (HAL), have seen a resurgence under the Modi government, she said.

‘Transformation under Modi govt’

The finance minister said that under the leadership of PM Modi, PSUs are thriving, benefiting significantly from the culture of professionalism infused in them along with increased operational freedom. The Modi government’s focus on capital expenditure has also led to substantial growth in their stock performance, she said.

Sitharaman said the government strategy has helped improve the performance of the CPSEs and reposed investor confidence. The focus on infrastructure development, power, logistics, etc, has directly benefited PSUs in railways, roads, power, metals, construction, heavy equipment manufacturing, etc, she wrote.

The Bharatiya Janata Party leader also said that the Modi government’s initiatives have helped the public sector banks to recover from the banking crisis created by the UPA. GNPAs in PSBs have fallen to decadal lows of 3.2% and profits are at record highs, even as the push to financial inclusion brings formal banking to every corner of the country, she wrote.

Public Sector Undertakings: UPA versus NDA

Even under late Prime Minister Atal Bihari Vajpayee’s government, shares of PSUs had performed better compared to UPA due to better management, the minister said. Sitharaman added that during 1999-2004 when the BJP-led National Democratic Alliance (NDA) was in power, the PSU index soared over 300%, vastly outperforming the BSE Sensex’s 70% gain.

Then, during 2004-09 under the UPA 1 government, the PSU index rose by 60%, but this was only half the growth rate of the Sensex.

During 2009-14 under UPA 2, the index declined by 6%, while the Sensex surged by 73%, said Sitharaman.

The minister used facts and data to argue that the transformation in PSUs under the Modi government was evident from a comparison of parameters between FY 2022-23 and FY 2013-14. She wrote that the total market cap of all 81 listed PSUs (62 CPSEs, 12 PSBs, 3 Public Sector Insurance Companies and IDBI Bank) had grown by 225%.

‘Maliciously attacking HAL’

In her X post, Sitharaman hit out at Rahul Gandhi for “maliciously attacking” Hindustan Aeronautics Limited (HAL). She said that contrary to the Congress leader’s claims, under PM Narendra Modi, HAL’s market valuation had skyrocketed by 1370% in merely four years, rising from Rs 17,398 crore in 2020 to Rs 2.5 lakh crore as of May 7, 2024.

HAL on March 31, 2024, announced its highest-ever revenue of more than Rs 29,810 crore for FY 2023-24 and has a robust order book of over Rs 94,000 crore.

Congress crippled institutions, says minister

Sitharaman, who has been at the helm of affairs at the finance ministry under the Modi 2.0 government, said that the figures hardly suggested a “weakening” institution but rather one experiencing significant fortification. Contrary to Rahul Gandhi’s claims, the finance minister said that it was the Congress party that left India crippled, relying heavily on imports rather than empowering its own institutions like HAL.

Historically, the Congress has shown a lack of faith in the nation’s scientists and engineers, fostering a dependency on imports that branded India as the world’s largest arms importer for many years, she said.

‘PM Modi ensured turnaround in defence sector’

Nirmala Sitharaman wrote that it is only under PM Modi that there has been a significant shift—turning India from an import-dependent country to one that’s now proudly stepping into the role of an arms exporter. The increased defence spending and aim of achieving ‘Atmanirbharta’ in the sector have fuelled the growth of PSUs like BEL, HAL, Mazagon Dock, etc, she said.

In FY 2023-24 alone, India reported arms exports worth Rs 21,000 crore. This achievement showcases the government’s robust confidence in India’s scientists and engineers, a stark contrast to the Congress’s approach, said the minister.

False claims also are made with respect to people losing jobs after disinvestment, she added.

At the end of the article, Sitharaman said that all claims of the Congress and Rahul Gandhi with respect to PSUs fall flat, as they are baseless.

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