Economics
India to Squeeze State-Run Companies as Deficit Worries Grow
- Jaitley said to ask state companies to invest or pay dividend
- Infrastructure spending may be reduced to meet deficit target
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With funds running short to sustain an infrastructure spending spree that’s underpinning India’s economic growth, Finance Minister Arun Jaitley will step up pressure on state-run companies to pick up the slack.
Jaitley plans to meet public-sector companies in November -- two months earlier than usual -- to urge them to pay higher dividends if they don’t invest more, according to two people familiar with the discussions. The dividends will go to the government, which is the majority shareholder in companies like Coal India Ltd., the world’s largest producer of the fuel.