On a day when industrial production recorded a measly 0.1 per cent growth, Finance Minister P. Chidambaram asked the nine cash-rich public sector undertakings to speed up their investment. Together these companies are sitting on Rs 1.80 lakh crore.
According to a senior official present at the meeting, “The Finance Minister told the PSUs to use it (cash) or lose it. The message was very clear: invest, invest and invest.”
No impediments
The PSUs called for the meeting included ONGC, NTPC, SAIL, BHEL, Oil India, Coal India, NMDC, MMTC and Indian Oil. The Minister met the chiefs of these companies, along with the Secretaries of their administrative Ministries.
At the meeting, which lasted for over two hours, the PSUs were assured that all impediments to investment would be removed.
Finance Ministry officials including Secretary to the Department of Economic Affairs Arvind Mayaram and Chief Economic Advisor Raghuram Rajan also attended the meeting.
Talking to reporters after the meeting, NTPC Chairman and Managing Director Arup Roy Choudhury said: “The discussion was on speedy achievement of capex. We are confident of achieving capex commitment.” He also discussed problems related to coal in the presence of the Coal Secretary. He hoped there would be some direction from the Finance Minister on fuel linkages after this meeting. NTPC plans to invest Rs 20,000 crore in the current fiscal and was confident of the capex plan.
Expectations
SAIL chairman C. S. Verma said there is no slowdown in the steel sector currently and the company is not facing any problem. In fact, steel demand between April and July had grown 8.8 per cent.
ONGC Chairman and Managing Director Sudhir Vasudeva said: “We have explained our stand on capex for the 12th Plan period to the Finance Minister. The current year’s capex plan stands at Rs 33,650 crore.”
According to BHEL Chairman and Managing Director B. Prasada Rao, “Order book at the end of first quarter is at Rs 1.35 lakh crore. Our basic trouble is the various problems plaguing the power sector. Our investments are connected to the power sector. Clearances and also coal linkages continue to be a problem.”
Coal India CMD S. Narsing Rao said the company was committed to investing Rs 40,000 crore in 2012-13, provided certain conditions were met.