The government has declared that central public sector units (PSUs) will either have to invest the surplus funds they have or just lose it.

Currently, as many as twenty-five PSUs, including ONGC, GAIL, NTPC, BHEL and SAIL, have surplus cash worth Rs around 2.5 lakh crore. But PSUs are reluctant to make investments as they perceive numerous hurdles to investment plus they don't see the current economic situation very propitious or conducive.

In a recent interview, Union Finance Minister P Chidambaram said that the government had already put central PSUs on notice that no one would be allowed to fall short of their announced intention to invest.

Speaking on the topic, Chidambaram said, "If they have not invested and they still have surplus cash, they have been told to invest... the principle is use it or lose it."

The Finance Minister added that the PSUs' performance on investment front would be reviewed in January next year.

At the start of current year, all central PSUs that had surplus cash had committed to use the cash to make investments.

PSUs that fail to invest their surplus funds may be forced by the government to announce special dividends benefiting the government.

Chidambaram also revealed that his ministry had already finalized amendments to the General Anti-Avoidance Rules (GAAR), and the controversial law against tax evasion would now go to the Prime Minister's Office and then Cabinet for approval. GAAR, which aims to prevent tax evasion through foreign investments, was proposed in the 2012-13 Budget.