Finance Minister P Chidambaram asked the heads of government-owned companies to make the cash on their books work harder.
Speaking to chairpersons of the country’s biggest public sector companies –- Coal India, NTPC, ONGC, SAIL, NMDC, BHEL, Oil India and MMTC -– the Finance Minister discussed in detail its investment proposals for the 12th five-year plan, which runs from April 2012 to March 2017.
PSUs ready to invest more; want govt to address coal issue
A total 191 projects with an investment of more than Rs 1,000 crore (approximately $180 million) across coal, steel, oil and the power sectors were reviewed by the Finance Minister.
Finance ministry officials told NDTV, ''While the total capital expenditure by these companies for the current fiscal is pegged at Rs 50,000 crore (approximately $9.1 billion), the FM has suggested that the investment bar be raised to Rs 70,000 crore ($12.7 billion) for (the) next fiscal. Over the next 18 months, we expect capital expenditure to the tune of Rs 1.20 lakh crore (approximately $25 billion) by these companies.”
After the meeting, Coal India Chairman S. Narsing Rao told reporters, ''Coal India will spend Rs 40,000 crore ($ 7.3 billion) as capital expenditure during the current five-year plan. This amount will include an additional sum of Rs 14,000 crore (approximately $2.6 billion), if certain conditions are met.''
SAIL, too, indicated that it will be raise capital expenditure by Rs 10,000 crore (approximately $1.8 billion).
SAIL Chairman, C.S. Verma said : ''Our capital expenditure is likely to move up by another Rs 10,000 crore. Otherwise our capex target for the 12th five-year plan is Rs 45,000 crore (approximately $8.2 billion).”
NTPC has decided not to increase its capital expenditure.
NTPC Chairman Arup Roy Chowdhury told NDTV, ''The company's capital expenditure for the current financial year is Rs 20,000 crore (approximately $3.6 billion) and we have no plans of increasing that. We have planned a total capital expenditure of Rs 2 lakh crore ($43 billion during the 12th Five Year Plan and we are committed to these spends.''
Earlier, Economic Affairs Secretary Arvind Mayaram had said these ‘navratnas’ and ‘maharatnas’ together ''are sitting on cash reserves of 1.80 lakh crore (approximately $40 billion), which should be used for capital expenditure”.
The companies at today’s meet also discussed various regulatory, financial and environmental hurdles for projects that are stuck. Coal India, particularly, discussed the vexatious issue of coal shortage with the Finance Minister.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
