Government CPSEs to park 60% surplus funds with PSU banks

NEW DELHI: The government on Tuesday asked the central public sector enterprises to park at least 60 per cent of their over Rs 1,00,000 crore of surplus funds with state- owned banks and not to call for competitive bids for depositing money.

"Finance Minister P Chidambaram has asked CPSEs to follow government instructions of parking 60 per cent of their investible surplus with PSU banks," ONGC Chairman and Managing Director R S Sharma told reporters after a meeting of CPSE heads with the minister here.

Pointing out that CPSEs have over Rs 1,00,000 crore of surplus investible funds, Sharma said, the minister has also asked the PSUs not to call for competitive bidding for parking them.

When asked whether the government directive would mean potential losses to the CPSEs, he said, the oil major has about Rs 23,000 crore of surplus funds and by rejecting the highest bid the company could lose about Rs 300- 400 crore annually.

The finance ministry had in January directed the public sector undertakings to deposit at least 60 per cent of their surplus funds with the PSBs.

The meeting called by Chidambaram to discuss the issue of depositing surplus fund was attended by GAIL Chairman U D Choubey, SAIL CEO S K Roongta, BSNL chief Kuldeep Goyal and senior officials of the petroleum, power and finance ministries among others.

The meeting comes amid complaints by public sector banks that CPSEs are not following the finance ministry guideline issued in January asking the public sector undertakings to park at least 60 per cent of their surplus funds with the PSBs.