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CPSE honchos to brief PMO on expansion plans today

The PMO has convened a meeting of heads of central public sector enterprises, including Bhel, SAIL and GAIL, on Monday to take stock of their capacity expansion and investment plans against the backdrop of the current slowdown in industrial growth, which reached a two-decade low in 2012-13.

The CMDs of big CPSEs like NTPC, PGCIL, Oil India, Indian Oil Corp and NPCIL, among others, are likely to attend the meeting which is being convened by the principal secretary to Prime Minister Manmohan Singh, a source said.

Secretaries of different departments, including coal, power, petroleum and natural gas, steel, defence and atomic energy, would also attend the meeting, the source said.

CPSEs with a total income of Rs 18.2 lakh crore accounted for 34.8 per cent of country's GDP in 2011-12. Investment by CPSEs, which had whopping cash and bank balance of Rs 2.8 lakh crore as on March 31, 2012, would provide a push to the dropping industrial growth.

Industrial output growth stood at 2.5 per cent in March 2013 while for 2012-13 the growth was just about 1 per cent. The government had earlier asked CPSEs to invest their surplus cash for growth and expansion or to give it to the exchequer as special dividend. There are around 260 CPSEs,  including 60 sick units.


HC SETS ASIDE TWO I-T NOTICES TO BSNL, OBSERVES THEY ARE ‘ILLEGAL’


The Delhi High Court has set aside two Income Tax notices ordering reopening of income assessment of BSNL for 2001-02 and 2002-03 on the grounds that the telecom PSU escaped assessment by claiming excessive depreciation on its assets.

'We set aside the notices dated 23 November, 2005 and 12 March, 2007 issued under Section 148 of the Income Tax Act and quash all proceedings initiated pursuant thereto,' a bench of Justices Badar Durrez Ahmed and Vibhu Bakhru said.

The court said the I-T notices and subsequent proceedings against Bharat Sanchar Nigam Ltd were 'illegal and liable to be quashed.'

The judgement came on two separate petitions filed by BSNL against the I-T notices ordering reopening of its concluded assessments for assessment year 2001-02 and 2002-03.  BSNL, a PSU, was incorporated on 15 September, 2000 for providing telecom services after assets and liabilities of Department of Telecommunication Services and Department of Telecommunication Operation were transferred to it. The book value of assets, comprising business being transferred to BSNL, was  assessed at Rs 63,000 crore.
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