Finance Ministry meet Heads of CPSEs to boost Capital Expenditure & to ensure quickly payments to Vendors

Ministry to constantly monitor progress of large infrastructure projects for Ministries as well as CPSEs

In order to boost capital expenditure of the Union Government so as to pump liquidity in the market to boost demand, Ministry of Finance held meeting with the heads of Maharatna and Navratna Central Public Sector Enterprises (CPSEs) and Financial Advisors(FAs) of infrastructure Ministries here today. The meeting was Co-Chaired by Shri Atanu Chakraborty , Secretary, Department of Economic Affairs and Shri G.C.Murmu , Secretary Department of Expenditure .

During the meeting following three areas were reviewed

(a) Capital expenditure by various CPSEs & Ministries. They were impressed upon to adhere to the expenditure plan and accelerate investment activities.

(b) Monitoring release of payments for procurements and other contracts without delay to infuse liquidity in a time bound manner.

(c) Resolution of outstanding payments which may have been held up on account of disputes.

Ministry of Finance would constantly monitor the progress of large infrastructure projects for the Ministries as well as the CPSEs and further follow meetings would be held. For this purpose, Ministry will be developing a dashboard for enabling Ministries to upload figures on periodic basis.

During last week, the Secretary (Expenditure) and Secretary (Economic Affairs) also Co-Chaired a meeting with the heads of large CPSEs and officials of the Ministry of Micro, Small and Medium Enterprises and the Ministry of Public Enterprises.

Government has devised a multi- pronged approach for providing boost to the economy. Merger of some Public Sector Banks and upfront capital infusion of ₹ 70.000 crore were announced recently. It is hoped that enhanced credit flow will spur investment cycle and help revive stressed sectors like housing. Start-ups have been exempted from ‘angel tax’. Distress in the auto sector has also been addressed through a package of measures.

Boosting capital expenditure and prompt vendor payments to accelerate infrastructure projects and improve liquidity in the economy. The Finance Ministry directed CPSEs and infrastructure ministries to adhere to capital expenditure plans, accelerate investments, expedite release of payments for procurements and contracts to infuse liquidity, and resolve outstanding payments delayed by disputes. The Ministry will monitor large infrastructure projects through periodic oversight, follow up meetings, and a dashboard for uploading project and financial figures.