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PSUs to Invest 
1.76 Lakh Crore
Thursday, 12 January 2012, 19:56 IST
Bangalore: Against the backdrop of economic slowdown, the Prime Minister's office has directed cash-rich public sector undertakings to go for investments to the tune of over 
1.76 lakh crore, including 1.41 lakh crore domestically to act as a stimulus in the next fiscal.
At a meeting chaired by the Prime Minister's Principal Secretary Pulok Chatterjee, 17 companies with cash and bank balance in excess of 1,000 crore were identified to undertake these investments, primarily in the infrastructure sector whose status will be monitored periodically. As per the decision, the PSUs will invest 1,41,389 crore domestically in the year 2012-13 and 35,009 crore overseas, sources said today.
The Principal Secretary observed that the PSU investment can provide stimulus to the economy and asked the companies to draw up credible investment programmes and implement those with "vigour so as to achieve maximum benefit for thecompanies themselves as well as the national economy." Among the companies, ONGC is projected to invest the maximum amount of 53,526 crore to 33,065 crore in domestic market and 20,461 crore overseas. It is followed by NTPC with 20,995 crore domestically and Power Grid Corporation India Limited with 20,000 crore. Other companies identified for investments included Oil India Limited , Coal India Limited, BHEL, GAIL, IOC, Engineers India Limited and SAIL, they said.
It was decided at the meeting that the CMDs of the companies would ensure that the projected investment plans are realised to the fullest extent, the sources said. The administrative secretary would review the status on a monthly basis to ensure that "any bottlenecks" external to the company are resolved expeditiously. Member Secretary of the National Manufacturing Competitiveness Council (NMCC), set up by the government to help boost growth of manufacturing sector, will review the status with the concerned administrative secretaries and CMD on a quarterly basis and apprise the PMO for follow up.
Discussing the investment plan of Coal India, the meeting noted that the company has cash and bank balance in excess of 40,000 crore but has been able to project an investment plan of only 4,275 crore for 2012-13 with the possibility of another 6,000 crore on acquisition of overseas assets. The Secretary of the Coal Ministry and CMD of Coal India were asked to review the position and attempt to advance some investments that have been planned in future years, the sources said.
In case it is not possible to significantly step up investment in the coal sector, CIL should actively consider investment in allied sectors such as roads, railways, waterways and power sector which would help the coal sector through improved evacuation and utilisation of coal, it was told. It was decided that Secretary of the Coal Ministry would provide a revised plan within two weeks after which a follow-up meeting would be held, if necessary.
Source: PTI
1.76 lakh crore, including 1.41 lakh crore domestically to act as a stimulus in the next fiscal.
At a meeting chaired by the Prime Minister's Principal Secretary Pulok Chatterjee, 17 companies with cash and bank balance in excess of 1,000 crore were identified to undertake these investments, primarily in the infrastructure sector whose status will be monitored periodically. As per the decision, the PSUs will invest 1,41,389 crore domestically in the year 2012-13 and 35,009 crore overseas, sources said today.
The Principal Secretary observed that the PSU investment can provide stimulus to the economy and asked the companies to draw up credible investment programmes and implement those with "vigour so as to achieve maximum benefit for thecompanies themselves as well as the national economy." Among the companies, ONGC is projected to invest the maximum amount of 53,526 crore to 33,065 crore in domestic market and 20,461 crore overseas. It is followed by NTPC with 20,995 crore domestically and Power Grid Corporation India Limited with 20,000 crore. Other companies identified for investments included Oil India Limited , Coal India Limited, BHEL, GAIL, IOC, Engineers India Limited and SAIL, they said.
It was decided at the meeting that the CMDs of the companies would ensure that the projected investment plans are realised to the fullest extent, the sources said. The administrative secretary would review the status on a monthly basis to ensure that "any bottlenecks" external to the company are resolved expeditiously. Member Secretary of the National Manufacturing Competitiveness Council (NMCC), set up by the government to help boost growth of manufacturing sector, will review the status with the concerned administrative secretaries and CMD on a quarterly basis and apprise the PMO for follow up.
Discussing the investment plan of Coal India, the meeting noted that the company has cash and bank balance in excess of 40,000 crore but has been able to project an investment plan of only 4,275 crore for 2012-13 with the possibility of another 6,000 crore on acquisition of overseas assets. The Secretary of the Coal Ministry and CMD of Coal India were asked to review the position and attempt to advance some investments that have been planned in future years, the sources said.
In case it is not possible to significantly step up investment in the coal sector, CIL should actively consider investment in allied sectors such as roads, railways, waterways and power sector which would help the coal sector through improved evacuation and utilisation of coal, it was told. It was decided that Secretary of the Coal Ministry would provide a revised plan within two weeks after which a follow-up meeting would be held, if necessary.
Source: PTI