PSU chiefs promise to meet capex plans, maintain dividend

There will be some shortfall, however, in the spending plans of the oil PSU because of problems concerning pipeline projects in the south: Vivek Rae

Heads of several blue-chip state- owned firms today assured Finance Minister P Chidambaram that they will try to meet their capital expenditure plans for 2013-14 and maintain the dividend paid last fiscal.

There will be some shortfall, however, in the spending plans of the oil PSU because of problems concerning pipeline projects in the south, Petroleum Secretary Vivek Rae told reporters after the meeting.

Others present at the meeting included ONGC CMD Sudhir Vasudeva, SAIL chief C S Verma and Coal India Chairman S Narsing Rao.

"There will be shortfall in our (petroleum PSUs') capex target because our pipeline in south India has been stuck for various reasons... There could be some reduction in capex of GAIL", Rae said, adding that the ONGC will pay 195% dividend.

As regards the Gas Authority, he added, the PSU "will maintain what it gave last year, around Rs 700 crore."

ONGC chief Vasudev said: "We will achieve our annual capex plan. There was a discussion on special dividend. I can't commit on special dividend because we will have to discuss in board.

"Last year, we had paid dividend in two tranches, total dividend was 190%. We will have to maintain the same this year also."

ONGC has planned to invest over Rs 35,049 crore in the current fiscal on exploration and production of oil and gas - 4% increase over capital expenditure in 2012-13.

Coal India chairman Rao said: "We are on track. Our capex target is Rs 5,000 crore we will be spending Rs 5,000 crore."

Chairman of the steel major Sail Verma said: "We will achieve this years capex plan. Our board will decide on special dividend."

SAIL has plans to spend Rs 13,000 crore in the current fiscal to part-fund ongoing expansion, which will take its installed capacity to over 24 million tonnes per annum (mtpa).