Economy

Gujarat ranks 12th in CPSE investments, jobs down 14% in 5 years

Our Bureau Ahmedabad | Updated on September 23, 2014


Gujarat has recorded a decline of over 14 per cent in employment generated by the Central Public Sector Enterprises (CPSEs) between 2008-09 and 2012-13, apex industry body Assocham said on Tuesday.

“About 46,300 people were employed by the CPSEs in Gujarat as of 2008-09 which significantly came down to about 39,700 people as of 2012-13,” according to a study titled ‘Employment Scenario in CPSEs,’ conducted by The Associated Chambers of Commerce and Industry of India (Assocham).

The number of people employed by the CPSEs (excluding contractual workers) across India came down from about 15.33 lakh to 14.04 lakh during the period, a fall of about eight per cent. “Punjab, Maharashtra, Bihar and Odisha are the only four states amid top 20 major states in India that have seen a surge in employment generated by the CPSEs while rest of the states have recorded a fall ranging between 3-22 per cent,” said D.S. Rawat, Secretary-General, Assocham.

CPSEs have made significant contribution towards employment generation in the organized sector as they accounted for 4.7 per cent share in total employment generated by public and private sector as of 2012-13. Gujarat’s share in employment generated by CPSEs in India marginally declined from about three per cent in 2008-09 to about 2.8 per cent in 2012-13.

Besides, in terms of investments made by CPSEs, Gujarat ranked 12th with a share of about 2.8 per cent as the state had attracted investments worth about Rs 15,200 crore of the total amount of Rs 5.5 lakh crore invested by the CPSEs during the 2008-09 and 2012-13 period.

Maharashtra alone claimed 20 per cent share in total gross block, followed by Andhra Pradesh (8.4 percent), Tamil Nadu (8.1 per cent), Odisha (6.7 per cent) and Uttar Pradesh (6.2 per cent) amid top five states attracting high share in investments by CPSEs.

There were altogether 582 projects under implementation in the central sector as of June, 2013 and out of these, 311 projects reported a time over run ranging from one month to 240 months which could have had a negative impact on employment. The investment would have been much more with improved employment generation had there not been delays in execution and implementation of the new projects, the study noted.

The CPSEs investment growth rate was recorded at 9.05 per cent in 2012-13 on year on year basis as compared to 13.42 per cent in 2011-12 and 9.48 per cent in 2010-11 and 15.52 per cent in 2009-10.

Besides, the CPSEs managed to rake in a smart growth in net profit despite difficult years in the global and domestic economy as overall net profit of all 229 CPSEs during 2012-13 stood at Rs 1.15 lakh crore compared to Rs 98 lakh crore during 2011-12, an increase of 17.36 per cent.

Published on September 23, 2014

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