New Delhi: Nirmala Sitharaman on Saturday held another high-level meeting with representatives of major Public Sector Undertakings (PSU) and said all payments which are pending related to government agencies and PSUs will be cleared by October 15.
“Payments which are pending for services rendered, goods supplied or any other work done for government agencies and the PSUs will be cleared by October 15,” Sitharaman said.
She said that a drive will be conducted between now and the first week of October so that all requirements are met and payments are done before October 15.
During the meeting, the PSUs were asked to give details of the lifespan of arbitrations that lock payments after disputes with vendors and contractors. State-owned firms have also been asked to submit their spending plans for the next four quarters.
Meanwhile, Finance Secretary Rajiv Kumar said 34 central public sector companies have already spent Rs. 48,077 crore till August and have detailed spending of another Rs. 50,159 crore till December 2019. Another Rs. 54,700 crore would be spent in the January-March quarter.
Sitharaman called the meeting on Saturday to review the total Capital Expenditure (CAPEX) by the CPSUs) in 2019-20 till now and plan for future CAPEX in current financial year. According to her the meeting was called to check how all outstanding payments of PSUs can be paid by October 15.
The meeting was attended by senior officials of the finance ministry and heads of PSUs like Oil India, NHAI, HAL, NHPC, CIL, Indian Oil, ONGC, Power Grid, NTPC, GAIL, HPCL, Hindustan Petroleum, among others.
On Friday also, Sitharaman held a meeting with secretaries and financial advisors of some key ministries to review the total Capex by the ministries in 2019-20. She also discussed different ways to revive the economy and push up investment.
The Finance Minister is holding a series of meeting with secretaries and chiefs of private banks after announcing a reduction in the country’s effective corporate tax rate from around 30 per cent to 22 per cent.