Budget: Infra, food, fertiliser PSUs get a lot

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Home > India > Business > Budget 2008-09 > Business Headline > Report

Budget: Infra, food, fertiliser PSUs get lion's share

BS Reporter in New Delhi | March 10, 2008 10:18 IST

A closer look at Budget papers shows that the government, while maintaining the annual allocation for public sector units at around Rs 19,440 crore (Rs 194.4 billion), has provided substantially more to PSUs in infrastructure, food, fertilisers and mass communication sectors.

The Airport Authority of India, Prasar Bharati, Food Corporation of India and fertiliser and pharmaceutical PSUs have seen a significant increase in budgetary support this year.

While a bulk of the AAI's allocation is for developing airports in Aurangabad, Puducherry, the North-East and J&K, the funds for Prasar Bharati are aimed at strengthening the government-owned broadcaster's reach in the North-East and J&K.

The hike in support to FCI is aimed at developing an integrated information system in foodgrain management, a focus area for the United Progressive Alliance government.

However, the railways and Delhi Metro, the lifeline of the capital, got less due to improved operational strengths.

The Plan investment figures for public enterprises indicate not a single rupee has been earmarked for any PSU under the ministries of petroleum and natural gas, mines, coal, and information and communication.

The PSUs under these ministries, like Bharat Sanchar Nigam Ltd, National Thermal Power [Get Quote] Corporation and Indian Oil Corporation [Get Quote], are profit-making ones.

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