PSU chiefs seek conducive climate to unlock cash piles

Chiefs of bluechip public sector undertakings (PSU) on Wednesday met Finance Minister P Chidambaram and assured him of stepping up investments to alter the business environment in the country but also wanted the government to address issues regarding project clearances and ensuring fuel linkages.

The government on Tuesday, through Department of Economic Affairs Secretary Arvind Mayaram, assured India Inc that it would take steps to contain the swelling fiscal deficit and ask bluechip PSU to unlock the cash piles to the tune of `1.8 lakh crore that they were sitting on to lend fillip to investment climate in the country.

Speaking to reporters after meeting the Finance Minister, NTPC Chairman and Managing Director, Arup Roy Choudhury said that the power sector giant plans to invest `20,000 crore in the ongoing financial year and was hopeful of sticking to its investment plans.

“Discussion was underway on speedy achievement on capex and we are confident of achieving the commitment,” he added.

Choudhury said, “We also discussed problems related to coal in the presence of Coal Secretary.” 

He also expressed the hope that there could be some direction from the Finance Minister after this meeting on the fuel linkage.

BHEL Chairman and Managing Director B Prasada Rao said the company’s order book at the end of the first quarter of this fiscal stood at `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 continues to be a problem.”

Coal India CMD, S Narsing Rao, said the company was committed to investing `40,000 crore in 2012-13 provided certain conditions were met.

The meeting was also attended by secretaries of different infrastructure sector ministries. Heads of other state-owned companies such as NMDC, MMTC and Oil India were also present at the meeting.

The exercise being undertaken by the Finance Ministry is aimed at pushing manufacturing sector and overall economic growth, which declined to nine-year low of 6.5% in 2011-12.