Cash rich PSUs to invest in projects to spur growthSeptember 11th, 2012 - 6:50 pm ICT by IANS
New Delhi, Sep 11 (IANS) The government is working on a mechanism under which nine major public sector undertakings (PSUs) having large cash reserves would start investing in infrastructure projects in a time-bound manner to boost growth.
Disclosing this, Arvind Mayaram, secretary of department of economic affairs (DEA), Tuesday said Finance Minister P. Chidambaram will meet chairmen and managing directors of the PSUs Wednesday and fix the deadlines for the companies’ investment.
“The identified PSUs are sitting on cash reserves of Rs.1.8 lakh crore. The identified projects will soon be posed to the union Cabinet for time-bound implementation of the projects,” Mayaram said.
He was addressing the national executive committee meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI) here.
Among other plans, Mayaram said the government would make a series of interventions to trigger growth in the economy like bringing on stream road and petroleum sector projects of Rs.1,000 crore or more.
In the next three months, a PPP (public-private partnership) framework will be put in place for creating warehousing facilities for food grains, entailing an investment of Rs.20,000 crore.
The DEA secretary said the government was aware of the lack of credit and that it was committed to ensuring early financial closure of large private sector companies.
“A slew of decisions have already been announced to ease external commercial borrowings and borrowings for Indian companies abroad would be made easier for retiring domestic loans.”
Mayaram also said that steps were being taken to control the fiscal deficit.
“This would involve a little hardship across the board, from low-income to high-income earners. The pain of fiscal correction will be felt by everybody.”
The key finance ministry official also urged the industry not to discount the good news on the economic front.
“The country had 80 million tonnes of food grain buffer which will be utilized to temper food prices; personal, home and vehicle loan disbursement have looked up and consumption remains strong.
“Even with a rate of growth of 6 percent, India remains a country with high growth and we must recognize this,” he said.
- Realty industry has little to cheer from budget (Comment) - Mar 18, 2012
- Prominent highlights of 2012-13 budget - Mar 16, 2012
- Budget highlights 4 - Mar 16, 2012
- Budget highlights 8 - Mar 16, 2012
- Budget highlights 7 - Mar 16, 2012
- SIDBI to be first to raise funds through ECB - Aug 27, 2012
- Shifting focus to growth, RBI infuses Rs.320 bn into system (Roundup) - Jan 24, 2012
- Budget 2012-13 misses big picture: Yashwant Sinha - Mar 16, 2012
- Making housing affordable: Realty industry needs budget boost (Comment) - Feb 26, 2012
- Srei to focus on IT, healthcare equipment financing - May 14, 2012
- State-run firms in Karnataka incur Rs.865 crore losses: CAG - Mar 15, 2011
- Public sector banks to disburse Rs.6 lakh crore farm loans: Chidambaram - Aug 25, 2012
- Indian Bank posts 13 percent growth in net profit - Jul 23, 2012
- Chandy seeks ADB help for Kerala - Jul 29, 2011
- Budget promises more money for all - farmers to corporates (Third Lead) - Feb 28, 2011
Tags: chambers of commerce, chambers of commerce and industry, external commercial borrowings, finance ministry official, fiscal deficit, food grain, food grains, income earners, indian chambers of commerce, infrastructure projects, national executive committee, p chidambaram, partnership framework, petroleum sector, private sector companies, psus, public private partnership, public sector undertakings, sector projects, union cabinet