In the first two months of FY24, the 54 CPSEs, along with the departmental arms, achieved 19 per cent of their combined budget target of Rs 7.33 trillion, Business Standard has learnt. The central government had increased the capex target by 13.4 per cent in FY24 over the revised target of Rs 6.46 trillion in FY23.
In the two months of FY24, the NHAI spent around Rs 29,920 crore against its annual capital expenditure target of Rs 1.62 trillion; Indian Oil Corporation (IOCL) achieved 18.2 per cent of its capex target of Rs 30,395 crore on the back of the resumption of work on its pipeline projects and boosting its refining capacity.
A senior finance ministry official said the focus of the government on capex has pushed these CPSEs to accelerate their expenditure at the beginning of the financial year. Generally, at the beginning of the financial year, these companies plan their capital expenditure and hence, there is usually a slow start to the cycle in the first quarter.
India’s largest crude oil and natural gas producer, ONGC, the two months of FY24 spent around Rs 4,880 crore against the annual capex target of Rs 30,125 crore. NTPC managed to achieve 8.6 per cent of its annual target of Rs 22,454 crore.
Fuel retailers/refinery companies — IOCL, BPCL, and HPCL — saw their capex target raised 67 per cent, from Rs 30,293 crore in FY23 to Rs 50,605 crore in FY24 collectively.
The capex report of these CPSEs after the end of every month is sent for review to the Prime Minister’s Office (PMO).
In the Union Budget 2023-24, Finance Minister Nirmala Sitharaman announced an increase of 33 per cent in the capex outlay to Rs 10 trillion to “crowd in” private investment, enhance growth potential, and provide a cushion against global headwinds; it is 3.3 per cent of gross domestic product. The target included Rs 1.3 trillion interest-free loans to states for 50 years.
