"Finance Minister P Chidambaram has asked CPSEs to follow government instructions of parking 60 per cent of their investible surplus with PSU banks," ONGC chairman and managing director R S Sharma said after a meeting of CPSE heads with the minister in New Delhi.
Pointing out that CPSEs have over Rs 1,00,000 crore of surplus investible funds, Sharma said, the minister has also asked the PSUs not to call for competitive bidding for parking them.
When asked whether the government directive would mean potential losses to the CPSEs, he said, the oil major has about Rs 23,000 crore (Rs 230 billion) of surplus funds and by rejecting the highest bid the company could lose about Rs 300- 400 crore (Rs 3-4 billion) annually.
The finance ministry had in January directed the public sector undertakings to deposit at least 60 per cent of their surplus funds with the PSBs.
The meeting called by Chidambaram to discuss the issue of depositing surplus fund was attended by GAIL chairman U D Choubey, SAIL CEO S K Roongta, BSNL chief Kuldeep Goyal and senior officials of the petroleum, power and finance ministries among others.
The meeting comes amid complaints by public sector banks that CPSEs are not following the finance ministry guideline issued in January asking the public sector undertakings to park at least 60 per cent of their surplus funds with the PSBs.Global meltdown: Complete coverage