CPSEs should deploy 60% surplus funds with State-owned Banks: Govt

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New Delhi, Nov 11 (UNI) The government today reiterated to the Central Public Sector Enterprises (CPSEs) to deploy at least 60 per cent of their more than Rs 1,00,000 crore surplus funds with Public Sector Banks and not to call for competitive bids for depositing money.

Earlier this year, the Finance Ministry had issued instructions to State-run enterprises to park 60 per cent of their funds with government-run commercial banks. However, such banks had complained that the directions were being ignored.

The aim of the Finance Ministry is to inject additional liquidity into the State-run Banks.

The CEOs, however, said by rejecting the highest bidder the companies would lose a lot of money.

To earn higher interest rates, CPSEs with surplus cash call for bids from banks for depositing funds. As a result, PSU banks lose out deposits to private sector banks, which bid aggressively by offering higher interest rate for CPSE funds.

The meeting was convened by Mr Chidambaram to discuss the issue of depositing surplus fund, It was attended among others by ONGC Chief R S Sharma, GAIL Chairman U D Choubey, SAIL CEO S K Roongta, BSNL Chief Kuldeep Goyal as well as heads of PSBs, senior officials of the Ministeries of Finance, Petroleum, and Power.

Petroleum Secretary R S Pandey said the issue was not of much relevance to the Petroleum Companies as all of them have more than 60 per cent of their surplus funds parked with the State-owned Banks.

''SAIL has about Rs 15,000 crore of surplus funds and avowed that his Company will follow government instruction in this regard.'' Similarly, Mr Choubey said GAIL has about Rs 4,000 crore of investible surplus and all of it was deposited with the PSBs.

However, Mr Kuldeep Goyal said BSNL has around Rs 30,000-35,000 crore as surplus money, but only 75 per cent of it was with PSU Banks.

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