India's Finance Minister P. Chidambaram urged Central Public Sector Enterprises (CPSEs) to do two things to their surplus funds - invest it, or hand it over.
Wealthy Central Public Sector Enterprises presently has an excess of funds amounting to INR2.8 lakh crore.
"Obviously, the surpluses of public sector enterprises cannot lie in a bank. The surpluses have to be invested, either they (CPSEs) invest or they give it to somebody who can invest it," the finance minister said in an interview with the India Times.
The Indian government is currently drafting regulations for surplus of funds, such as in the case of Central Public Sector Enterprises. The guidelines that will be created is said to boost the Indian economy, promote further investment and growth.
When asked about the date of the new rules on excess funds, the finance minister answered, "There are many ideas that are circulating, but I have not seen any final paper on that."
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