Finance Ministry asks large CPSEs to make investments to pump liquidity

The meeting was Co-Chaired by Shri Atanu Chakraborty, Secretary, Department of Economic Affairs and Shri G.C.Murmu, Secretary Department of Expenditure.

New Delhi: The finance ministry on Friday asked large central public sector enterprises (CPSEs) to stick to their capital expenditure plan which will increase liquidity in the market and boost economic growth.

This was emphasised during a meeting between finance ministry officials and heads of 'Maharatna' and 'Navratna' CPSEs.

The meeting, co-chaired by economic affairs secretary Atanu Chakraborty and expenditure secretary G C Murmu, was also attended by financial advisors of infrastructure ministries.

During the meeting, capital expenditure by various CPSEs and ministries came up for review, said an official release.

"They were impressed upon to adhere to the expenditure plan and accelerate investment activities," it said.

The meeting was called to discuss ways to boost capital expenditure of the government and increase liquidity in the market.

India's economy slowed to an over 6 year-low in the first quarter of the current fiscal amid faltering sales of automobiles and consumer non-durable goods.

The release further said the focus was also on "monitoring release of payments" for procurement and other contracts without delay to ensure liquidity in a time-bound manner.

Resolution of outstanding payments which may have been held up on account of disputes was also reviewed.

"Ministry of Finance would constantly monitor the progress of large infrastructure projects for ministries as well as CPSEs and further follow meetings would be held," it added.

After the meeting, ONGC executive director N C Pandey said as many as 27 projects worth Rs 87,000 crore are on stream.

These projects will be completed in 3-4 years, he told reporters.

"We are on track. We are hopeful that these projects will be completed on time," he said.

On issues related to payment, Pandey said, it was emphasised in the meeting that endeavours should be made to make payment ahead of scheduled date.

Among others, the meeting was attended by CMD PGCIL, Director projects NTPC, Member Finance NHAI, Director of Finance SAIL, and CEO GeM.

Financial advisors of railways, health and family welfare, petroleum and natural gas, road transport and highways, shipping, power, civil aviation, housing and urban affair, water resources, rural development and HRD ministries participated in the meeting.

Last week, the expenditure secretary and the economic affairs secretary had co-chaired a meeting with heads of large CPSEs and officials of the MSME ministry.