Govt to utilise Rs2,00,000-cr surplus with cash-rich PSUs for investment

The government proposes to utlilise the nearly Rs2,00,000-crore surplus cash lying idle in the accounts of cash-rich public sector undertakings (PSUs) to set up a finance corporation to utilise these funds.

These funds could also be used for infrastructure projects and also for reviving sick PSUs, reports quoting union minister of heavy industry and public enterprises Anant Geete said.

Of the 71 ailing PSUs, 46 are believed to be still in a state to be revived with some financial and management support.

The government has approved a plan to revive 46 ailing public sector undertakings, envisaging a total assistance of Rs40,885 crore, minister of state for public enterprises, G M Siddheshwara informed parliament last week.

"The government has approved revival of 46 CPSEs (central public sector enterprises) envisaging a total assistance of Rs40,885 crore (cash assistance of Rs10,932 crore and non-cash assistance of Rs29,953 crore)," minister of state for public enterprises GM Siddheshwara told the Rajya Sabha in a written reply.

As per the Public Enterprises Survey 2013-14, 71 CPSEs incurred loss during that fiscal.

''We are thinking of setting up a finance corporation to utilise the surplus cash with PSUs,'' PTI quoted Geete as saying.

The proposed finance corporation will be a joint venture with equity participation by Maharatna PSUs and other cash-rich central public sector enterprises.

The minister said the proposal has been discussed with these PSUs and nothing has been finalised. The name and structure of the body have also to be finalised.

A committee headed by Arup Roy Choudhury, chairman of NTPC, has been constituted to examine the proposal of setting up the firm, which will administer and manage sick state-run enterprises that can be revived.