NEW DELHI: The Ministry of Finance on Friday asked large central public sector enterprises (CPSEs) to stick to their capital expenditure plans to increase liquidity in the market and boost economic growth.
This was emphasised during a meeting between finance ministry officials and heads of ‘Maharatna’ and ‘Navratna’ CPSEs. The meeting, co-chaired by Economic Affairs Secretary Atanu Chakraborty and Expenditure Secretary G C Murmu, was also attended by financial advisors of infrastructure ministries.
During the meeting, capital expenditure by various CPSEs and ministries came up for review, said an official release. “They were impressed upon to adhere to the expenditure plan and accelerate investment activities,” said the ministry statement.
The meeting was called to discuss ways to boost capital expenditure of the government and increase liquidity in the market. The government wants to kick start the economy and create more jobs and considers increased spending on capital infrastructure to be a quick way of creating demand downstream for cement, steel and a host of equipments.
India’s economy slowed to an over 6 year-low of 5 per cent in the first quarter of the current fiscal amid faltering sales of automobiles and consumer non-durable goods. The finance ministry said the focus was also on “monitoring release of payments” for procurement and other contracts without delay to ensure liquidity in a time bound manner.
“The Ministry of Finance would constantly monitor the progress of large infrastructure projects for ministries as well as CPSEs and further follow meetings would be held,” it said. The meeting was attended by CMD PGCIL, director projects NTPC, member finance NHAI, director finance SAIL etc.
India’s economy slowed to an over 6 year-low of 5 per cent in the first quarter of the current fiscal amid faltering sales of automobiles and consumer non-durable goods. So the meeting was called to discuss ways to boost capital expenditure of the government