The government is working on norms for utilisation of surplus funds with cash-rich public sector units (PSUs), estimated at around Rs 2.8 lakh crore, with a view to boost investment and promote growth.
“Recently, a panel has submitted its report to the finance ministry. Once the report is finalised, the Department of Public Enterprises will go ahead with the new norms,” an official said.
Last year, a panel headed by Department of Economic Affairs additional secretary Shaktikanta Das, was constituted to review guidelines on investment of excess funds available with cash-rich central public sector enterprises (CPSEs).
“CPSEs need to make gainful investment as India is facing the issue of high fiscal deficit. Also, the government is relying on surplus-cash available with PSUs to stimulate economic activity,” he said.