Capital expenditures by CPSEs exceeding targets over last few years: Finance Ministry
Dec 16, 2024
New Delhi [India], December 16 : The Department of Public Enterprises (DPE) has reported that capital expenditure (CAPEX) by Central Public Sector Enterprises (CPSEs) and other monitored organizations over the past few years has exceeded targets.
In a social media post, Finance ministry on Monday posted that "With consistency in monitoring, @DPE_GoI has been able to ensure increased Capital Expenditure #CAPEX over the past years and it stands at 56.84 per cent for FY2024-25 as on 30.11.2024".
As of November 30, 2024, CAPEX expenditure by CPSEs for the current financial year 2024-25 has reached 56.84 per cent of the annual target, showcasing robust progress in infrastructure development and economic activities.
Over the years, CPSEs have exceeded the CAPEX targets. In FY2022-23, the CAPEX target was Rs 6.45 lakh crore, and CPSEs surpassed this by achieving Rs 6.48 lakh crore, crossing 100 per cent of the estimate.
The growth continued in FY2023-24 as well, where CPSEs achieved a remarkable Rs 8.05 lakh crore against a target of Rs 7.41 lakh crore, marking over 108 per cent achievement.
In the current fiscal, as of November 30, 2024, CPSEs have spent Rs 4.41 lakh crore which is 24.2 per cent more as compared to the same period in the previous financial year. For FY 2024-25, the government set an ambitious target of Rs 7.76 lakh crore.
The government is also empowering and delegating more financial powers to CPSEs by upgrading their status to Maharatna and Navratna.
Nine CPSEs have been upgraded to Navratna status while Hindustan Aeronautic Limited or HAL is granted Maharatna status.
CPSEs who were upgraded to Navratna status NFL, NHPC, SJVN, Railtel Corporation of India, Mazagon Dock, Solar Energy Corporation of India etc.
This demonstrates the government's commitment to driving capital-intensive projects and contributing to India's economic growth.
DPE monitors the CAPEX performance of select CPSEs to ensure timely and effective investments in critical sectors.
This reflects significant momentum in public sector investments despite being midway through the financial year.
The Department of Public Enterprises emphasized its role in monitoring and facilitating CAPEX by CPSEs, underscoring the importance of consistent performance reviews to meet and exceed targets. These investments are critical for the nation's infrastructure, employment generation, and overall economic resilience.
