Cash-rich public sector units (PSUs) on Wednesday shared their capital expenditure plans with the government and agreed to step up investment.
In a meeting with Finance Minister P Chidambaram on Wednesday, heads of PSUs also raised issues related to the supply of coal and project clearances. The PSUs, sitting on a cash pile of about Rs 1.8 lakh crore, committed investments running into few thousand crores over the next five years, but cautioned they were facing some issues and those should be addressed, especially problems in the power sector.
“The discussion was on speedy achievement on capex, and we are confident of achieving capex commitment,” NTPC Chairman and Managing Director Arup Roy Choudhury told reporter after the meeting. He said NTPC’s problem was largely related to the coal supply issue and expressed hope that there could be some direction from the finance minister after this meeting on the fuel linkage.
The company plans to invest Rs 20,000 crore in this financial year and about Rs 2 lakh crore in the 12th Five-Year Plan.
BHEL Chairman and Managing Director B Prasada Rao also echoed similar views. The order book of the company at the end of June ended quarter this year was Rs 1.35 lakh crore. “Our basic troubles are the various problems plaguing the power sector. Our investments are connected to the power sector. Clearances and also coal linkages continue to be problems,” Rao said.
ONGC Chairman Sudhir Vasudeva said the company was expected to make an investment of Rs 1.64 lakh crore in the 12th Plan period. He said its current year capex plan stood at Rs 33,650 crore.
SAIL will make an investment Rs 45,000 crore in the 12th Plan. It will also look at an additional outlay of Rs 10,000 crore to Rs 12,000 crore. NMDC is expected to invest about Rs 330,000 crore over the next five years.
Coal India is also planning to invest Rs 40,000 crore in 2012-13 subject to certain conditions.
“We have a plan for Rs 25,400 crore (investment)in the current Five-Year Plan, plus another Rs 14,500 crore if certain conditions are made. So that takes us to Rs 40,000 crore total,” said Coal India Chairman S Narsing Rao.
The meeting was also attended by chiefs of PSUs such as MMTC and Oil India. Secretaries of key infrastructure ministries also attended the meeting.