PSUs to clear overdues by 15th October to boost economic growth

The government has set 15th October as the deadline for central PSUs to clear overdue payments to vendors and contractors as it looks to lift economic growth from six-year low by boosting expenditure.

Finance Minister Nirmala Sitharaman has said that state-owned companies have also been asked to set up a portal by 15th October where service providers, vendors and contractors can track bills and payments so that liquidity crunch is mitigated.

Apart from that, public sector undertakings (PSUs) have been asked to detail lifespan of arbitrations that lock payments after disputes with vendors and contractors adding that the state-owned firms have also been asked to submit spending plans for the next four quarters.

Finance Secretary Rajiv Kumar has said that 34 central PSUs have already spent Rs 48,077 crore till August and have detailed spending of another Rs 50,159 crore till December 2019.

Expenditure Secretary Girish Chandra Murmu has said that capex of all the 242-odd PSUs will be over Rs 4 lakh crore.

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