Principal Secretary to the Prime Minister Manmohan Singh sent out this message to the heads of cash-rich CPSEs and the secretaries of different departments including power, coal, steel and Petroleum and Natural Gas, a source present in the high-level meeting told PTI.
"CPSEs have been asked to adhere to their commitments of investment and take steps so that the respective targets are fulfilled, particularly for the first two quarters of the current fiscal," he said.
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"Those which fail to achieve the target will have to pay higher dividend during the period so that the idle funds can be used elsewhere to ensure growth and job creation," the source added.
The source also said the PMO has directed all concerned secretaries of different departments to monitor the progress of investment on monthly basis. The PMO will also review the progress in three months from now.
"Four-five CPSEs have also been reprimanded for sitting on higher cash surplus," he said, without naming the CPSEs.
The meeting, to take stock of the capacity expansion and investment plans of the CPSEs (Central Public Sector Enterprises), took place against the backdrop of slowdown in industrial and sluggish economic growth.
The CMDs of big CPSEs like NTPC, PGCIL, Oil India, Indian Oil Corp and NPCIL were present at the meeting.
India has around 260 CPSEs, including 60 sick units. With a total income of Rs 18.2 lakh crore, CPSEs accounted for 34.8% of country's GDP in 2011-12.
Industry sources said investment by CPSEs, which had whopping cash and bank balance of Rs 2.8 lakh crore as on March 31, 2012, would provide the required push to slowing industrial and economic growth.
Industrial output growth stood at 2.5% in March 2013 while for 2012-13 the growth was just about 1%. The country's economy is estimated to have grown by five% in the last fiscal and is projected to grow by over six% in 2013-14.