PMO set to monitor capex plans of 24 CPSEs

The PMO held a review of the investment plans by the central public sector companies on Monday. For financial year 2013-14,Manmohan Singh’s office will monitor the capital expenditure plans of 24 companies,up from 17 that were tracked last year. The target for investment has been set at Rs 1,41,912 crore,split into four quarterly targets. It was Rs 1,41,389 crore in 2012-13 but the actual achievement was lower at 80 per cent.

The flat investment target,a PMO release explained “has to be seen in the context of the significant enhancement in Capex plans compared to earlier years and the problems many faced

on clearances”.

The government has been encouraging the companies to either plough their estimated cash reserves of Rs 2,50,000 crore as investments or return the same as dividends to the finance ministry.

In a meeting with the chiefs of 25 public sector units in October last year,Singh had made the dual offer.

The PMO review shows Neyveli Lignite Corporation has emerged as the biggest investor with a 108 per cent investment,followed by Power Grid with 100 per cent. The others in the list were Indian Oil Corporation (97 per cent) NTPC (94) ,ONGC (89),Oil India (83), NHPC (81) and Coal India (76). These companies accounted for over Rs 90,000 crore of the final capex achieved.

The new companies added to the target list include Bharat Dynamics,HAL,Mazagaon Docks and,significantly,Nuclear Power Corporation.

The PMO release added the targets would be monitored on a quarterly basis to ensure that there were no slippages. “In case of any issue relating to clearances,the CMDs have been asked to bring these to the notice of the Cabinet Committee on Investment”. The finance ministry expects GDP for 2013-14 to return to a healthy band of 6.1 to 6.7 per cent.