The Prime Minister has asked the Central Public Sector Enterprises, CPSEs to use the cash surplus into real investment in order to boost spending and revive economic growth. Addressing their meeting of top 25 Enterprises in New Delhi Dr. Manmohan Singh pointed out that investment rate should be increased to 37 per cent to achieve 8 per cent growth. He said, there is a need for improving coordination in expediting project clearances and for generating an appropriate long term vision.
Briefing newspersons after the meeting the Minister of Heavy Industries and Public Enterprises, Mr. Praful Patel said the Centre will set up a High Powered Regulatory body to look into the issues of Central Public Sector Enterprises, including autonomy and investment. The body to be headed by the Cabinet Secretary will comprise officials from the Prime Minister's Office, Planning Commission and Ministries of Finance and Heavy Industries and Public Enterprises.
Mr. Patel said that the body will periodically monitor functioning of CPSEs. He said that during the meeting Prime Minister emphasised on the vital role of CPSEs in the economic growth of the country. He said they contribute about 25 per cent of the total market capitalisation which is to the tune of fifteen lakh six thousand crore rupees.