Procure more from MSMEs and come up with development plan in 100 days says PM Narendra Modi to CPSEs

Last Updated: Mon, Apr 09, 2018 21:50 hrs
Narendra Modi (PTI image)

New Delhi: Prime Minister Narendra Modi gave a 100-day ultimatum to heads of central public sector enterprises (CPSEs). The deadline is to come up with a plan achieving "measurable targets" for strengthening state-owned companies and promoting development activities.

The PM was speaking at the sidelines of a CPSE conclave and was presented various ideas and concepts. CPSEs presented thematic presentations to the PM on topics such as human resource management, corporate governance, innovations, financial re-engineering, and technology, and Vision 2022 for New India.

According to data available on the Bombay Stock Exchange, as on 31.3.2016, there are 320 CPSEs wherein 76 enterprises are yet to commence commercial operations. Remaining 244 were operating enterprises (covering 181 scheduled CPSEs & 52 CPSEs has been considered provisional).

Modi watching these presentations said the government had given operational freedom to CPSEs to improve their performance. They have contributed significantly in nation-building, and in the national economy since independence, he added.

After watching over the presentations, he asked CPSEs to come with implementation roadmaps along with "measurable targets". In order to boost the make in India, especially the micro, small and medium enterprises, he expressed concern about the meagre procurement from the sector. He prodded CPSEs to buy more from smaller units and to ensure timely payments.

In 2016, procurement made by CPSEs stood at Rs 25,000 crore out of the total 1.30 lakh crore business conducted by MSMEs.

Identifying five challenges for CPSEs, Modi said they should focus on maximising their geo-strategic reach, minimising import bill, integrating innovation and research, optimal utilisation of CSR Fund and coming up with a new development model by 2022.

The Prime Minister also asked the CPSEs managements to hold their meetings at lesser known tourist destinations to aid and promote domestic tourism.

"I need to learn a lot from you. If I spend more time with you, I shall emulate what I learn from you in the government. I hope that exactly after 100 days, whatever you have said today, you will come to me with a foolproof roadmap and after fixing responsibility," Modi replied the congregation of heads of CPSEs.

Besides supporting various government programs, Modi suggested that CPSEs could sponsor thematic CSR activities each year. These may not be limited to taking part in flagship government programs alone, such as development made on construction of toilets in schools. CPSEs could also seek to partake in CSR activities involving skill development programmes. One such area the PM suggested was the development of 115 aspirational districts identified by Niti Aayog for special focus.

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