Coordinating Committee of Secretaries to help PSUs on global raw-material hunt

NEW DELHI: Government has formed a high-level panel of secretaries to assist the PSUs which want to launch global hunt for strategetic wealth such as oil, minerals and even agri resources.

The Coordinating Committee of Secretaries (CCoS), headed by Cabinet Secretary Ajit Kumar Seth, is follow-up to the policy "for acquisition of assets abroad by PSUs to ensure adequate raw-material which is crucial for growth of the manufacturing sector and the economy as a whole", an official in the Department of Public Enterprises (DPE) said.

While the Cabinet had given financial autonomy up to Rs 3,000 crore to Navratnas and Rs 5,000 crore to Maharatna PSUs for acquiring assets abroad, the CCoS will chip in only if these firms are seeking funds from the government for their global plans.

"The CCoS would add value to the PSU proposals like avoiding competition among Indian companies and facilitating quick decision-making.." he said.

In cases, where the PSUs have the financial autonomy the CCoS will get involved, only if asked by the firms concerned.

India has to catch up with China which has done some aggressive overseas buy-outs of key raw-material assets like coal, iron ore and oil.

He said, if required, the CCoS would facilitate a consortium approach in high-value or strategically important acquistions.

However, it was clarified that the CCoS would not replace the existing mechanism of Empowered Committee of Secretaries (ESC) in the ministries of Petroleum and Natural Gas and Steel.

"They (ECS) would continue to function and consider proposals for acquiring raw-material abroad beyond the powers delegated to the boards of concerned PSUs," the DPE official said.