Building on Prime Ministers emphasis on domestic investment revival,the government is setting up a Group of Officers with representatives from five cash-rich Central public sector enterprises (CPSEs) to work out the guidelines changes required to stimulate investments. The Department of Public Enterprises has constituted the group to review the existing guidelines and recommend rationalised and consolidated guidelines with special emphasis on energy sector.
It is felt that there is a need for rationalising and consolidating these guidelines, says the DPE letter,adding that the norms were first issued in December 1994 and have been amended from time to time. The group,headed by a Finance Ministry official,would have officials from the ministries of coal,power and petroleum & natural gas as well as from the Department of Defence Production.
However,the selection of the CPSEs is primarily on the basis of the idle cash surplus they held with low investment plans and their leadership position in that sector,sources said. They include: Bharat Electronic Ltd,ONGC Videsh Ltd,Power Finance Corp,Coal India Ltd and Bharat Heavy Electricals Ltd.
The group of officers has been given the freedom to co-opt any officer from any other ministry or CPSE but has been set the deadline of March 31 to submit its report. The December 1994 norms were set on the recommendation of the Joint Parliamentary Committee which enquired into the securities scam where a few CPSEs had parked their funds.
The intent of these norms was very restrictive with emphasis on maximum safety and no element of speculation on the yield.