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New Delhi: In an effort to give a boost to the economy to provide impetus for growth in the aftermath of the COVID-19 pandemic, PSUs have recorded a capital expenditure (capex) of Rs 5.55 lakh crore in FY22, which is 96.56 percent of the target for the previous financial year, according to the Department of Public Enterprises (DPE). "Against an estimated expenditure of Rs 5.75 lakh crore (approximately), achievement is Rs 5.55 lakh crore (approximately) or about 96.56 percent," said the DPE.
In FY21, capex incurred by PSUs stood at Rs 4.6 lakh crore. With capex spending at Rs 5.55 lakh crore in FY22, PSUs have registered a nearly 21 percent rise in spending year-on-year. The government has strictly directed PSUs to increase their capex spending in order to stimulate economic activities and break the lull caused by the COVID-19 pandemic. The Ministry of Finance has been conducting regular review meetings for PSUs from various sectors to keep track of their capex. The nodal department for monitoring the progress in this respect is DPE.
PSUs have been directed to plan expenditure on National Infrastructure Pipeline (NIP), undertake projects through public-private partnership (PPP), raise funds through asset monetisation and convergence under National Master Plan (Gati Shakti). Finance Minister Nirmala Sitharaman had said last year that infrastructure projects are a priority for the government and to achieve the intended vision of the capex stimulus given in the Union Budget, an increase of 34.5 percent over the last year, it is essential that physical and financial projects targets are expended in the early quarters of the financial year.
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