Govt asks PSUs to step up capex, dividends

Borrowing programme remains unchanged for now, but to be reviewed in December

The government on Thursday nudged state-owned companies to spend an additional Rs 25,000 crore as capital expenditure this fiscal year, above the budgeted combined capital spending target of Rs 3.85 lakh crore for the Centre and public sector undertakings (PSUs).

It also asked these companies to declare liberal dividend payments to the government.

Additionally, the Centre said it would borrow Rs 2.08 lakh crore during October 2017-March 2018. It had borrowed Rs 3.72 lakh crore during April-September.

While the full-year borrowing estimate of Rs 5.80 lakh crore is being adhered to for now (net borrowing at Rs 4.25 lakh crore),