PSUs contribution to exchequer up 16% in 2010-11

Written by Pradip Kumar Dey | Updated: Dec 19 2011, 05:57am hrs
Public sector companies made a higher contribution to the government exchequer by way of taxes and duties in 2010-11 compared with the preceding year. But the ratio between the contribution made by the companies to the exchequer and their total income declined due to new duty concessions.

The contribution to the exchequer normally includes excise duty, sales tax, wealth tax, income tax, fringe benefit tax and deferred tax. The contribution to the exchequer for 50 public sector companies (central and state) fell by 2.6% to R93,613 crore in 2009-10 from R96,177 crore in 2008-09 and rose by 16.3% to R1.09 lakh crore in 2010-11. The ratio of contribution made to exchequer to total income increased from 9.65% in 2008-09 to 9.73% in 2009-10 and fell to 9.41% during 2010-11.

Kishor P Ostwal, CMD, CNI Research, said : The rise in the contribution to the national exchequer by PSUs is the consequential impact of top line growth.

The aggregated excise of the 50 companies fell by 10% to R50,026 crore during 2009-10 from R55,944 crore during 2008-09 and increased thereafter by 22.9% to R61,496 crore during 2010-11.

A steady increase in excise duties was seen in the case of HPCL, NTPC, Indraprastha Gas, BEML, Tide Water Oil, Bharat Electron, FACT, Oil India and Coal India. Payment on account of excise duty by HPCL steadily increased by 2.8% to R7,251 crore during 2009-10 from R7,050 crore during 2008-09 and by 22.7% to R8,897 crore during 2010-11.

Payment on account of income tax by these PSUs also increased by 9.6% to R28,568 crore in 2009-10 from R26,070 crore in 2008-09 and by 1.4% to R28,961 crore in 2010-11.

A steady increase was seen in 2010-11 from the level of 2008-09 in the case of NTPC, NHPC, Engineers India, CPCL, Indraprastha Gas, Hindustan Copper and PTC India. Payment on account of excise duty by NTPC steadily increased from R1,137 crore in 2008-09 to R2,553 crore in 2010-11.

The top five PSUs according to contribution to exchequer in 2010-11 were IOC, ONGC, BPCL, HPCL and SAIL. Among these, ONGC had the highest contribution-to-total income ratio.

The contribution to the exchequer by ONGC decreased by 2.1% to R20,008 crore in 2009-10 from R20,443 crore in 2008-09 and by 5.4% to R21,097 crore in 2010-11.

The share of contribution to the exchequer to total income increased from 29.6% in 2008-09 to 31.13% in 2009-10 and fell to 29.41% in 2010-11.

A steady decrease in the ratio was seen in the case of Oil India, GAIL, Indraprastha Gas, MOIL, BEML, Container Corporation and Coal India .The ratio of GAILs contribution to exchequer to its total income decreased from 7.76% in 2008-09 to 7.11% in 2009-10 and to 6.43% in 2010-11. Similarly, in BEMLs case, the ratio steadily decreased from 7.69% in 2008-09 to 6.98% in 2010-11. BEMLs contribution to the national exchequer fell by 5.3% from R246 crore in 2008-09 to R233 crore in 2009-10 and by 10.3% to R209 crore in 2010-11.