India: State undertakings asked to invest for stimulus

New Delhi, Jan 11 (PTI) Against the backdrop of economic slowdown, India's Prime Minister's office has directed the country's cash-rich public sector undertakings (PSUs) to go for investments to the tune of over Rupees 1,763.98 billion (about USD 34.0 billion), including Rs 1,413.89 billion (about USD 27.2 billion) domestically to act as a stimulus in the next fiscal beginning april 1, 2012. At a meeting chaired by the Prime Minister's Principal Secretary Pulok Chatterjee, 17 companies with cash and bank balance in excess of Rs 10.0 billion were identified to undertake these investments primarily in the infrastructure sector whose status will be monitored periodically. As per the decision, the PSUs will invest Rs 1,413.89 billion domestically and Rs 350. 09 billion (about USD 6.7 billion) overseas during fiscal 2012-13, sources said here today. The Principal Secretary observed that the PSU investment can provide stimulus to the economy and asked the companies to draw up credible investment programmes and implement them with "vigour so as to achieve maximum benefit for the companies themselves as well as the national economy." Among the companies, oil major ONGC is projected to invest the maximum amount of Rs 535.26 billion, followed by thermal power generator NTPC with Rs 209.95 billion, and Power Grid Corporation India Limited with Rs 200.0 billion. (Rs 52 = US$ 1). Other companies identified for investments included Oil India Limited, Coal India Limited, BHEL, GAIL, Indian Oil Corporation, Engineers India Limited and SAIL, they said. It was decided at the meeting that the CMDs of the companies would ensure that the projected investment plans are realised to the fullest extent, the sources said. The administrative secretary would review the status on a monthly basis to ensure that "any bottlenecks" external to the company are resolved expeditiously. Member Secretary of the National Manufacturing Competitiveness Council (NMCC), set up by the government to help boost growth of manufacturing sector, would review the status with the concerned administrative secretaries and CMD on a quarterly basis and apprise the PMO for follow up. PTI