Friday, August 12, 2022

Out of FY22 capex target of Rs 5.95 lakh cr, PSUs have spent Rs 3.07 lakh cr so far: DPE

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  • The expenditure is almost 52 percent of the overall capex target for FY22
  • PSUs have been directed to plan expenditure on National Infrastructure Pipeline (NIP), undertake projects through PPP, raise funds through asset monetisation

New Delhi: Central public sector undertakings (PSUs) have spent Rs 3.07 lakh crore so far out of the total capex target of Rs 5.95 lakh crore for financial year 2021-22, according to a monthly summary prepared by the Department of Public Enterprises (DPE) for the Cabinet. The expenditure is almost 52 percent of the overall capex target for FY22. “Against an estimated annual expenditure of Rs 5.95 lakh crores (approx.), achievement is Rs 3.07 lakh crores (approx.) or about 51.74 percent,” said the DPE.

Govt keeping close tabs on capex spending by PSUs

The government has been keeping a close tab on capex spending by PSUs with review meeting being held every month to track the expenditure. 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 has said 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. 

The government has been putting a lot of focus on getting PSUs to increase their capex spending in order to stimulate economic activities and break the lull caused by the COVID-19 pandemic. Capex spending by PSUs is tracked by the DPE, which is the nodal department for the collection of data pertaining to this vertical.

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