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Sep 28, 2019

Finance Ministry directs CPSUs to undertake a drive to clear payments post arbitrations by Oct 15

Tweeted By @DDNewsLive
Finance Minister Nirmala Sitharaman today said her Ministry has given specific directions Central Public Sector Undertakings, CPSUs to undertake a drive to clear payments post arbitrations up to 15th October. Briefing to media after her meeting with Heads of major CPSUs in New Delhi today, Ms Sitharaman said, the Ministry asked them if there were any hurdles in honouring of arbitration awards by CPSUs. She said the enterprises have been asked to review all post-arbitration counterclaims. She said, a delay of regular nature is often used as an explanation for delayed payments. She sought details lifespan of arbitrations involving CPSUs.

She said, nearly 60 thousand crore rupees of purchases have been made by central public sector enterprises outside of Government E-Marketplace, GEM. She said, her Ministry has asked details for why purchases were made out of the GEM platform. Ms Sitharaman said, she is not alleging wrongdoing but there must be a rationale.

She reviewed total Capital Expenditure, CAPEX in 2019-20 till now and plan for future CAPEX in the current Financial Year. The meeting was attended by the Finance Secretary, Secretaries of Economic Affairs, Expenditure along with Micro, Small and Medium Enterprises and Controller General of Accounts. 

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