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Capital expenditure (capex) by 54 large central public sector enterprises (CPSEs) and five departmental arms having an annual capex target of Rs 100 crore and above has touched 32 per cent of their annual capex target of Rs 7.33 trillion in the first quarter of this financial year, according to government sources.
This is in comparison to 20.7 per cent capex spent by the CPSEs during the June quarter a year ago.
The capex by this group of CPSEs is around Rs 2.34 trillion in the April-June quarter so far.
This is around 71 per cent growth in capex against Rs 1.37 trillion spent in the first quarter of FY23. The central government had increased the capex target by 13.4 per cent in FY24 over the revised target of Rs 6.46 trillion in FY23.
During FY23, these CPSEs and departmental arms were able to achieve 100.5 per cent of their full-year revised target of Rs 6.46 trillion.
The National Highways Authority of India (NHAI) and the Railways have started this financial year’s capex cycle on a stronger note.
In the first three months of FY24, the NHAI has spent around Rs 79,865 crore (47 per cent) against its annual capital expenditure target of Rs 1.62 trillion; Indian Oil Corporation (IOC) achieved 30 per cent of its capex target of Rs 30,395 crore on the back of the resumption of work on its pipeline projects and boosting its refining capacity.
The Railway Board, excluding the Dedicated Freight Corridor Corporation of India (DFCCIL) and Kolkata Metro Rail Corporation, achieved 32 per cent of the capex target of Rs 2.44 trillion.
A senior finance ministry official said the focus of the government on capex had pushed these CPSEs to accelerate their expenditure at the beginning of the financial year.
Generally, at the beginning of the financial year, these companies plan their capital expenditure and hence, there is usually a slow start to the cycle in the first quarter.
He said the capex targets were taken seriously by these CPSEs as that help the government undertake their performance evaluation and decide on performance-related pay.
India’s largest crude oil and natural gas producer, ONGC, in the first quarter of FY24 spent around Rs 7,531 crore against the annual capex target of Rs 30,125 crore. NTPC managed to achieve 16 per cent of its annual target of Rs 22,454 crore.
Hindustan Petroleum Corporation and Bharat Petroleum Corporation spent around Rs 3,267 crore (32 per cent) and Rs 1,600 crore (16 per cent), respectively, of their annual capex target.
The increase in petroleum capex would enable the retrofitting of refineries to meet emission standards and partly augment strategic reserves.
The capex report of these CPSEs after the end of every month is sent for review to the Prime Minister’s Office.
The Centre has been focusing on a capex-led recovery for the economy through the exchequer as investments from the private sector lag.
This is in comparison to 20.7 per cent capex spent by the CPSEs during the June quarter a year ago.
The capex by this group of CPSEs is around Rs 2.34 trillion in the April-June quarter so far.
This is around 71 per cent growth in capex against Rs 1.37 trillion spent in the first quarter of FY23. The central government had increased the capex target by 13.4 per cent in FY24 over the revised target of Rs 6.46 trillion in FY23.
During FY23, these CPSEs and departmental arms were able to achieve 100.5 per cent of their full-year revised target of Rs 6.46 trillion.
The National Highways Authority of India (NHAI) and the Railways have started this financial year’s capex cycle on a stronger note.
In the first three months of FY24, the NHAI has spent around Rs 79,865 crore (47 per cent) against its annual capital expenditure target of Rs 1.62 trillion; Indian Oil Corporation (IOC) achieved 30 per cent of its capex target of Rs 30,395 crore on the back of the resumption of work on its pipeline projects and boosting its refining capacity.
The Railway Board, excluding the Dedicated Freight Corridor Corporation of India (DFCCIL) and Kolkata Metro Rail Corporation, achieved 32 per cent of the capex target of Rs 2.44 trillion.
A senior finance ministry official said the focus of the government on capex had pushed these CPSEs to accelerate their expenditure at the beginning of the financial year.
Generally, at the beginning of the financial year, these companies plan their capital expenditure and hence, there is usually a slow start to the cycle in the first quarter.
He said the capex targets were taken seriously by these CPSEs as that help the government undertake their performance evaluation and decide on performance-related pay.
India’s largest crude oil and natural gas producer, ONGC, in the first quarter of FY24 spent around Rs 7,531 crore against the annual capex target of Rs 30,125 crore. NTPC managed to achieve 16 per cent of its annual target of Rs 22,454 crore.
Hindustan Petroleum Corporation and Bharat Petroleum Corporation spent around Rs 3,267 crore (32 per cent) and Rs 1,600 crore (16 per cent), respectively, of their annual capex target.
The increase in petroleum capex would enable the retrofitting of refineries to meet emission standards and partly augment strategic reserves.
The capex report of these CPSEs after the end of every month is sent for review to the Prime Minister’s Office.
The Centre has been focusing on a capex-led recovery for the economy through the exchequer as investments from the private sector lag.
