Power sector PSUs meet 80% of FY22 capex target; PGCIL, SJVN biggest spenders

• The capex for the April-December period of FY22 is 47 percent higher than the expenditure incurred by power sector PSUs during the corresponding period of FY21
• Power Grid Corporation of India Ltd (PGCIL) has met 90.6 percent of its capex target, followed by SJVN at 90.19 percent

New Delhi: Power sector PSUs have met 80 percent of the capital expenditure (capex) target for financial year 2021-22 by spending Rs 40,395.34 crore in the April-December period, said the Ministry of Power on Thursday. Lauding power sector PSUs' performance on this front, the ministry said in an official statement, "CPSEs under Ministry of Power have incurred capital expenditure (capex) of Rs 40,395.34 crore till the month of December during FY 2021-22. This is 47 percent higher than the expenditure incurred during the corresponding period of FY 2020-21."

"Thus, the capex performance of the Ministry is significantly better compared to the previous year," the statement added.

Capex: PGCIL, SJVN biggest spenders

The top performers among the power sector PSUs include Power Grid Corporation of India Ltd (PGCIL), which has met 90.6 percent of its capex target, followed by SJVN at 90.19 percent, NTPC at 86.5 percent and THDC at 85.38 percent. The Power Ministry also said that the PSUs under its administrative control have collectively met 80 percent of the capex target for FY22 — Rs 50,690.52 crore.

The Ministry of Power has laid a strong emphasis on accelerating the pace of capital expenditure on power sector projects. Regular monitoring and reviews are held to resolve issues hindering the implementation of projects.

Backdrop

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. According to a monthly summary prepared by the Department of Public Enterprises (DPE) for the Cabinet, Central public sector undertakings (PSUs) had spent Rs 3.07 lakh crore at the end of November 2021 out of the total capex target of Rs 5.95 lakh crore for financial year 2021-22. Capex spending by PSUs is tracked by the DPE, which is the nodal department for the collection of data pertaining to this vertical.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)