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Public Sector Giants Invest Rs 50,200 Crore in April Capex

Public Sector Giants Invest Rs 50,200 Crore in April Capex

In April FY25, large public sector companies spent over Rs 50,200 crore on capital expenditure, achieving 6.46% of their annual target of Rs 7.77 lakh crore, according to an official. This spending pace is slower compared to April FY24, when Rs 54,177 crore was spent, representing 7.3% of the full-year target of Rs 7.42 lakh crore.

The official noted that capex spending is expected to accelerate and that the provisional April numbers are likely to increase once revised. April's capital expenditure was primarily driven by the railways, road, and oil and gas sectors.

The Indian Railways and its sector PSUs led the spending with Rs 26,641 crore, followed by the National Highways Authority of India (NHAI) at Rs 6,645 crore. In the oil and gas sector, ONGC incurred a capex of Rs 2,318 crore, while Indian Oil Corporation (IOC) spent Rs 2,423 crore. Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd spent Rs 1,155 crore and Rs 417 crore, respectively. The power sector PSU NTPC reported a capex of Rs 2,083 crore.

The finance ministry monitors the capital expenditure of PSUs with annual investment targets exceeding Rs 100 crore. The Interim Budget for 2024-25 set a cumulative capex target of Rs 9.01 lakh crore for all PSUs. Of this, Rs 7.77 lakh crore is allocated to PSUs with annual capex targets over Rs 100 crore. In the previous fiscal year, these large PSUs exceeded their budget target by spending Rs 8.05 lakh crore against a target of Rs 7.42 lakh crore.

Overall, while April FY25's capex figures show a slower start compared to the previous year, the spending is projected to gain momentum in the coming months, reflecting ongoing investments in critical infrastructure sectors.

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Public Sector Giants Invest Rs 50,200 Crore in April Capex

Public Sector Giants Invest Rs 50,200 Crore in April Capex

In April FY25, large public sector companies spent over Rs 50,200 crore on capital expenditure, achieving 6.46% of their annual target of Rs 7.77 lakh crore, according to an official. This spending pace is slower compared to April FY24, when Rs 54,177 crore was spent, representing 7.3% of the full-year target of Rs 7.42 lakh crore.

The official noted that capex spending is expected to accelerate and that the provisional April numbers are likely to increase once revised. April's capital expenditure was primarily driven by the railways, road, and oil and gas sectors.

The Indian Railways and its sector PSUs led the spending with Rs 26,641 crore, followed by the National Highways Authority of India (NHAI) at Rs 6,645 crore. In the oil and gas sector, ONGC incurred a capex of Rs 2,318 crore, while Indian Oil Corporation (IOC) spent Rs 2,423 crore. Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd spent Rs 1,155 crore and Rs 417 crore, respectively. The power sector PSU NTPC reported a capex of Rs 2,083 crore.

The finance ministry monitors the capital expenditure of PSUs with annual investment targets exceeding Rs 100 crore. The Interim Budget for 2024-25 set a cumulative capex target of Rs 9.01 lakh crore for all PSUs. Of this, Rs 7.77 lakh crore is allocated to PSUs with annual capex targets over Rs 100 crore. In the previous fiscal year, these large PSUs exceeded their budget target by spending Rs 8.05 lakh crore against a target of Rs 7.42 lakh crore.

Overall, while April FY25's capex figures show a slower start compared to the previous year, the spending is projected to gain momentum in the coming months, reflecting ongoing investments in critical infrastructure sectors.

 
 

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