CPSE investments 20% higher in April-Jan at Rs 6.09 trillion

financialexpress.com:

Large central public-sector entities – companies and undertakings (CPSEs) – achieved 83% of their combined capital expenditure target for FY24 in April-January by spending Rs 6.09 trillion, supporting the public capex-led economic growth revival.

On an annual basis, these entities’ capex grew by 20% on year in the first ten months of the current financial year compared with Rs 5.06 trillion in the year-ago period (78% of the FY23 target).

The capex target for the CPSEs and other agencies was set at Rs 7.33 trillion for FY24, 13% higher than the achievement of Rs 6.48 trillion in FY23.

Railways and the National Highways Authority of India (NHAI) with large budgetary support as well as petroleum/energy CPSEs are the largest public-sector investors that play a key catalytic role in crowding capex from other entities.

In April-January 2024, the Railway Board invested Rs 2.03 trillion in projects or 83% of its annual target of Rs 2.44 trillion. The achievement till January in the current financial year was 34% 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.

In April-January of FY24, NHAI invested Rs 1.44 trillion or 89% of its annual target of Rs 1.62 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 Indian Oil Corporation (IOC) achieved a capex of Rs 35,524 crore or 117% of its annual target of Rs 30,395 crore in April-January of FY24.

ONGC, the top CPSE player in oil and gas exploration, has achieved a capex of Rs 27,448  crore in the first ten months of the