Finance ministry tells large CPSEs to accelerate investment activities

The finance ministry on Friday asked large central public sector enterprises (CPSEs) to accelerate their investment activities and monitor release of payments for various projects to push up economic growth. 

The growth had plunged to over six-year low in the first quarter of the current financial year. 

At a meeting between finance ministry officials and heads of ‘Maharatna’ and ‘Navratna’ CPSEs, the public sector enterprises were also told to resolve outstanding payments, held up due to disputes. 

The meeting, co-chaired by economic affairs secretary Atanu Chakraborty, expenditure secretary G C Murmu and also attended by financial advisors of infrastructure ministries, also reviewed capital expenditure by various CPSEs and ministries.

“They were impressed upon to adhere to the expenditure plan and accelerate investment activities,” a statement by the finance ministry said. 

The statement further said focus was also on “monitoring release of payments” for procurement and other contracts without delay to ensure liquidity in a time-bound manner.

The meeting also called upon public sector undertakings to resolve outstanding payments which may have been held up on account of disputes. 

“Ministry of Finance would constantly monitor the progress of large infrastructure projects for ministries as well as CPSEs and further meetings would be held,” it added.

After the meeting, ONGC executive director N C Pandey said as many as 27 projects worth Rs 87,000 crore are on stream. These projects will be completed in 3-4 years, he told reporters. “We are on track. We are hopeful that these projects will be completed on time,” he said.

On issues related to payment, Pandey said it was emphasised in the meeting that endeavours should be made to make payment ahead of scheduled date.

Gross fixed capital formation in the economy crawled up to four per cent in the Q1, FY20 against 3.4 per cent in Q4 of FY19. 

Besides ONGC, representatives from PGCIL, NTPC, NHAI, SAIL and GeM participated in the meeting. Financial advisors of railways, health and family welfare, petroleum and natural gas, road transport and highways, shipping, power, civil aviation, housing and urban affair, water resources, rural development and HRD ministries also took part in the meeting. 

On Thursday also, Chakraborty and Murmu had met officials from the ministries of road transport & highways, railways, telecom and housing & urban affairs to review their capital expenditure programme.