NEW DELHI: Capital expenditure by large public sector enterprises (with annual capex target of Rs 100 crore) has seen an 11% decline in the first six month of the current financial year. In the April-September period of the current financial year, large CPSEs have spent Rs 3.38 lakh crore in asset creation, which is 43.57% of the estimated expenditure of Rs 7.76 lakh crore for the full year.
In the same period FY24, these PSU companies had made Rs 3.79 lakh crore in capex. In FY24, these corporations spent Rs 8.05 lak crore in capex, 109% of the budget target of Rs 7.41 lakh crore.
The slowdown in CPSE capex is in line with overall drop in central government’s capex in the first year of FY25. The central government has spent Rs 4.14 lakh crore in capex against the full-year target of Rs 11.11 lakh crore. In the first six months of the current financial year, the government capex fell by 15%. As per ICRA, to meet the FY25 budget target for cxapex, the government needs to incur a capex of Rs 1.16 lakh crore a month during second half of the year, which entails a considerable expansion of 52% relative to previous year.