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In FY13, top CPSEs invested Rs 1.11 lakh crore in economy

Major central public sector enterprises (CPSEs) invested Rs.1.11 lakh crore in the Indian economy last fiscal and a target of Rs.1.41 lakh crore has been set for the current fiscal, the Prime Minister's Office (PMO) said Monday.

The PMO has been monitoring the the investment plans of 17 major CPSEs since 2012-13 financial year to enhance investment in the economy by utilising substantial cash surpluses that are available with CPSEs.

'In FY13, the CAPEX (capital expenditure) plans of 17 CPSEs were identified for close monitoring.

The CAPEX target for these CPSEs was Rs.141,389 crore. The CPSEs achieved almost 80 percent of the target,' the PMO said in a statement.

'This performance has to be seen in the context of the significant enhancement in CAPEX plans compared to earlier years and the problems many faced on clearances.'


According to the statement, in a meeting held on Monday at the PMO, six more CPSEs were added to the list of existing 17 companies and a target of Rs.1.41 lakh crore was set for the current fiscal.

'In the meeting, all the secretaries of the concerned departments and the CPSE chairman-cum-managing directors (CMDs) were urged to work towards fulfilling and exceeding these targets as this was extremely important for the economy,' the statement said.

The statement further said that the PMO will monitor the progress in achieving investment targets on a quarterly basis to ensure no slippages occur.

'In case of any issue relating to clearances, CPSE CMDs were asked to bring these to the notice of the cabinet committee on investment,' the statement said.

The statement added that Neyveli Lignite Corporation, Power Grid, Indian Oil, NTPC, ONGC, Oil India, Coal India and NHPC accounted for over Rs. 90,000 crores of the final CAPEX achieved in 2012-13.

The 23 companies selected include ONGC, Oil India, GAIL, Indian Oil, SAIL, NMDC, Powergrid, CONCOR, NALCO, BHEL, BEL and Rashtriya Ispat Nigam among others.


SPEND EXCESS FUNDS OR UP DIVIDEND: PMO TO CMDS

The Prime Minister's Office (PMO) on Monday directed central PSUs to invest their excess funds or else pay higher dividend so that surplus funds could be deployed elsewhere to fuel growth and create jobs.

Principal secretary to the Prime Minister Manmohan Singh sent out this message to the heads of cash-rich Central Public Sector Enterprises and the secretaries of different departments including power, coal, steel and Petroleum and Natural Gas, a source present in the high-level meeting said.

'Central Public Sector Enterprises have been asked to adhere to their commitments of investment and take steps so that the respective targets are fulfilled, particularly for the first two quarters of the current fiscal,' he said.

'Those which fail to achieve the target will have to pay higher dividend during the period so that the idle funds can be used elsewhere to ensure growth and job creation,' the source added.

'Four-five ‘Central Public Sector Enterpriseshave also been reprimanded for sitting on higher cash surplus,' he said, without naming the CPSEs.

The meeting, to take stock of the capacity expansion and investment plans of the CPSEs (Central Public Sector Enterprises), took place against the backdrop of slowdown in industrial and sluggish economic growth.

India has around 260 ‘Central Public Sector Enterprises, including 60 sick units. With a total income of Rs 18.2 lakh crore, CPSEs accounted for 34.8 per cent of country's GDP in 2011-12.

Industry sources said investment by ‘Central Public Sector Enterprises, which had whopping cash and bank balance of Rs 2.8 lakh crore as on 31 March, 2012, would provide the required push to slowing industrial and economic 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 country’s economy is estimated to have grown by five per cent in the last fiscal and is projected to grow by over six per cent in 2013-14.
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