Better performance of CPSEs can help economy recover from COVID-19 impact: FM Nirmala Sitharaman

The Finance Minister said that better performance of CPSEs can help the economy in a big way to recover from the impact of COVID-19.

Better performance of CPSEs can help economy recover from COVID-19 impact: FM Nirmala Sitharaman
Image courtesy: Twitter/PIB

New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday (July 7) held a review meeting with Secretaries of Ministries of Petroleum and Natural Gas, Power, Coal, Mines and Department of Atomic Energy and the CMDs of 23 CPSEs belonging to these ministries to discuss the country's economic growth. 

Reviewing the performance of CPSEs, the Finance Minister said that CPSEs have a very important role in giving a push to the growth of the Indian economy. She encouraged the CPSEs to perform better to achieve targets and to ensure that the capital outlay provided to them for the year 2020-21 is spent properly and within time. 

FM Sitharaman said that better performance of CPSEs can help the economy in a big way to recover from the impact of COVID-19, asking them to closely monitor the performance of CPSEs in order to ensure capital expenditure to the tune of 50% of capital outlay by Q2 2020-21 and make a plan for it. 

The Finance Minister also stated that unresolved issues should be flagged immediately to the DEA/DPE for an immediate solution.

The Ministries/ CPSEs discussed constraints being faced by them due to COVID 19 like problems of availability of manpower, delay in imports, delay in payments by DISCOMs on the dues of CPSEs like NPCIL and NLC. 

Sitharaman stated that extraordinary situation requires extraordinary efforts and with collective efforts, adding "we will not only perform better but also help the Indian economy to achieve better results."

In FY 2019-20, against the CAPEX target of Rs 1,64,822 crore for the 23 CPSEs, the achievement was Rs 1,66,029 crore i.e. 101%. Q1 (FY 2019-20) achievement was Rs 26,320 crore (16%) and achievement of Q1 (FY 2020-21) is Rs 20,202 crore (12%). CAPEX target for 2020-21 is Rs 1,65,510 crore, said the Finance Ministry statement.