Press Information Bureau

Government of India

Ministry of Finance

06-September-2012 17:34 IST

Surplus Amount of CPSEs for Expansion and Overseas Acquisitions

The Government has approved the implementation of a policy for acquisition of raw material assets aboard by CPSEs in October, 2011. The objective of the policy is to put in place a fast track and coordinated decision making process in order to facilitate acquisition of raw material abroad by CPSEs for the requirement of manufacturing sector in the country

As per Public Enterprise Survey 2010-11 placed in the Parliament on 22.03.2012 all Central Public Sector Enterprises (CPSEs) taken together have a total cash and bank balance of Rs. 284153 Crores as on 31.03.2011.

Decisions on investment/utilization of surplus funds in various projects, expansion, diversification, joint ventures, subsidiaries etc. are taken by the Board of the CPSEs based on their corporate plans.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

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DSM/RS/Hb

Policy for overseas raw material acquisitions enables CPSEs to invest surplus funds under board-approved corporate plans. A government policy from October 2011 creates a fast-track, coordinated decision-making framework enabling CPSEs to acquire raw material assets abroad to supply domestic manufacturing, while investment or utilisation of CPSE surplus funds for projects, expansion, joint ventures or subsidiaries remains a Board-level decision governed by each CPSE's corporate plan.