Park 60% surplus funds with PSU banks: Govt to CPSEs

The government today asked the central public sector enterprises to park at least 60% of their over

Rs 1,00,000 cr of surplus funds with state- owned banks and not to call for competitive bids for

depositing money.     

"Finance Minister P Chidambaram has asked CPSEs to follow government instructions of parking

60% of their investible surplus with PSU banks," ONGC Chairman and Managing Director R S

Sharma told reporters after a meeting of CPSE heads with the minister here.     

Pointing out that CPSEs have over Rs 1,00,000 cr of surplus investible funds, Sharma said, the

minister has also asked the PSUs not to call for competitive bidding for parking them.     

When asked whether the government directive would mean potential losses to the CPSEs, he said,

the oil major has about Rs 23,000 cr of surplus funds and by rejecting the highest bid the company

could lose about Rs 300- 400 cr annually.     

The finance ministry had in January directed the public sector undertakings to deposit at least 60

per cent of their surplus funds with the PSBs.     

The meeting called by Chidambaram to discuss the issue of depositing surplus fund was attended

by Gail Chairman U D Choubey, Sail CEO S K Roongta, BSNL chief Kuldeep Goyal and senior

officials of the petroleum, power and finance ministries among others.     

The meeting comes amid complaints by public sector banks that CPSEs are not following the

finance ministry guideline issued in January asking the public sector undertakings to park at least

60% of their surplus funds with the PSBs.