Government to monitor utilisation of funds by PSUs’ monthly
The government has decided to monitor the utilisation and management of capital expenditure by public sector units (PSUs) on a monthly basis.business Updated: Apr 01, 2016 00:14 IST
The government has decided to monitor the utilisation and management of capital expenditure by public sector units (PSUs) on a monthly basis.
Besides, it is also keeping an eye on the investments of these companies with a view to yield better returns amid fiscal constraints. After the buyback of 25% shares in Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL), which garnered almost Rs 5,300 crore, the government is looking for more such cases, sources said.
Over Rs 2 lakh-crore surplus cash is lying idle with PSUs. The government is likely to aggressively follow the buyback model to achieve its disinvestment target of Rs 56,500 crore for the current financial year (2016-17).
The state-owned units have been asked to send a detailed report to the Centre on their investments and capex plans.
The Prime Minister’s Office is also keeping a close watch, sources added.
The PSUs have also been asked to strengthen their balance sheets by restructuring capital wherever applicable, while expanding their business activities by leveraging their net worth.
“Keeping in mind the focus of the government on management of its investments in PSUs, a professional approach to capital management and capital restructuring is of great relevance,” said Neeraj Kumar Gupta, secretary, department of disinvestment.
With the buyback of shares from HAL and BDL, total disinvestment revenue stands at Rs 24,000 crore for 2015-16, compared to the revised estimate of Rs 25,312 crore.
“The government has responded positively by participating in the buyback (in HAL and BDL),” Gupta added.