NEW DELHI: Central public-sector entities – companies and undertakings (CPSEs) – achieved 92% of their combined capital expenditure target for FY24 in April-February by spending Rs 6.8 trillion, maintaining their acceleration in capex in the current financial year.
On an annual basis, these entities’ capex grew by 21% on year in the first eleven months of the current financial year compared with Rs 5.6 trillion in the year-ago period (87% of the FY23 target).
The capex target for the CPSEs and other agencies was set at Rs 7.42 trillion as per the FY24 revised estimate, 14.5% higher than the achievement of Rs 6.48 trillion in FY23.
While railways, the largest public sector investor kept up the acceleration in capex so far in the current financial year compared with the previous years, other large investors including the National Highways Authority of India (NHAI), Indian Oil Corporation and Oil & Natural Gas Corporation (ONGC) have achieved over 100% of their annual target in April-February of FY24.
In the first eleven months of FY24, the Railway Board invested Rs 2.24 trillion in projects or 92% of its annual target of Rs 2.44 trillion. The achievement till February in the current financial year was 31% higher on year. The Railways have been investing heavily in capacity improvement works such as doubling/quadrupling, electrification and introducing an array of high-speed trains.
NHAI has invested Rs 1.7 trillion or 102% of its annual target of Rs 1.67 trillion. The large capex push through railways and NHAI helps boost job creation.
Petroleum CPSEs are ramping up their refining capacity and green transition. Fuel retailer-cum-refiner IOC achieved a capex of Rs 38,675 crore or 124% of its annual target of Rs 31,254 crore in April-February of FY24.
ONGC, the top CPSE player in oil and gas exploration, has achieved a capex of Rs 30,535 crore in the first eleven months of the current financial year or over 100% of the annual target of Rs 30,500 crore.
Power generation major NTPC has invested Rs 21,114 crore in April-February of FY24, 94% of its annual target.
Real GDP growth in Q3FY24 was a surprising 8.4% on year, which was largely driven by higher gross fixed capital formation at 10.6% on year due to the Centre, states and CPSEs’ thrust on capex.
Source: The Financial Express