PMO convenes CPSEs meet tomorrow to review investment plans

NEW DELHI: The PMO has convened a meeting of heads of central public sector enterprises, including BHEL, SAIL and GAIL, tomorrow to take stock of their capacity expansion and investment plans against the backdrop of slowdown in industrial growth.

The CMDs of big CPSEs like NTPC, PGCIL, Oil India, Indian Oil Corp and NPCIL, among others, are likely to attend the meeting which is being convened by the Principal Secretary to Prime Minister Manmohan Singh, a source said.

Secretaries of different departments, including coal, power, petroleum and natural gas, steel, defence and atomic energy, would also attend the meeting, the source said.

CPSEs with a total income of Rs 18.2 lakh crore accounted for 34.8 per cent of country's GDP in 2011-12. Investment by CPSEs, which had whopping cash and bank balance of Rs 2.8 lakh crore as on March 31, 2012, would provide a push to the dropping industrial growth.

Industrial output growth stood at 2.5 per cent in March 2013 while for 2012-13 the growth was just about 1 per cent.

The government had earlier asked CPSEs to invest their surplus cash for growth and expansion or to give it to the exchequer as special dividend.

There are around 260 CPSEs, including 60 sick units.