Finance Ministry asks CPSEs to stick to capex plan

The Finance Ministry on Friday met heads of the Central Public Sector Enterprises (CPSEs) in an effort to boost capital expenditure and ensure quick payment to the vendors to infuse liquidity in the market. The heads of Maharatna and Navratna Central Public Sector Enterprises (CPSEs) and Financial Advisors (FAs) of infrastructure Ministries attended the meeting.

The meeting was co-chaired by Atanu Chakraborty, Secretary, Department of Economic Affairs, and G.C. Murmu, Secretary Department of Expenditure, an official statement said.

The Ministry and the CPSEs reviewed three areas: Capital expenditure by various CPSEs and ministries where the CPSEs were asked adhere to the expenditure plan and accelerate investment activities. The meeting reviewed release of payments for procurements and other contracts without delay so as to infuse liquidity in a time-bound manner. The hour-long meeting also focused on resolution of outstanding payments which may have been held up on account of disputes.

During last week, the Secretary (Expenditure) and Secretary (Economic Affairs) also co-chaired a meeting with the heads of large CPSEs and officials of the Ministry of Micro, Small and Medium Enterprises and the Ministry of Public Enterprises. The government has devised a multi-pronged approachfor providing boost to the economy.

Merger of some Public Sector Banks and upfront capital infusion of Rs 70,000 crore were announced recently. It is hoped that enhanced credit flow will spur investment cycle and help revive stressed sectors such as housing.

Start-ups have been exempt from `angel tax`. Distress in the auto sector has also been addressed through a package of measures.

The statement said the Ministry of Finance would constantly monitor the progress of large infrastructure projects for the Ministries as well as the CPSEs and further follow-up meetings would be held. The Ministry will be developing a dashboard for enabling Ministries to upload figures on periodic basis.

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The meeting was attended by CMD PGCIL, Director projects, NTPC, Member, Finance NHAI, Director Finance ONGC and SAIL, CEO of GeM and additonal member of Finance of Railways. FAs of Railways, health & family welfare, petroleum & Naural gas, road transport & highways, shipping, power, civil aviation, housing & urban affairs, water resources, rural developement and HRD attended the meeting.