Seven Central Public Sector Enterprises (CPSEs) belonging to Steel, Civil Aviation and Railway have spent 14 per cent of target on capital assests during first three months (April-June) of FY 2020-21.
Total target of these CPSEs for capital expenditure during current fiscal is ₹24,663 crore, of which ₹3,557 crore spent during first three months. Last year, this amount was ₹3,878 crore. This means in value term, the amount this year is less, but in percentage term it was a tad higher than 13 per cent of last fiscal. In FY2019-20, against the capex target of ₹30,420 crore for these seven CPSEs, the achievement was ₹25,974 crore i.e. 85 per cent.
On Thursday, Finance Minister Niramla Sitharaman reviewed capex with Secretaries of the Ministries of Civil Aviation, and Steel, and the Chairman Railway Board (CRB), along with the CMDs of these CPSEs belonging to these Ministries.
In second such virtual meeting, Sitharaman reviewed the progress in capex in the current financial year in the backdrop of Covid-19 induced slowdown. While mentioning the significant role of CPSEs in giving a push to the growth of the Indian economy, the Finance Minister encouraged the CPSEs to perform better to achieve their targets and to ensure that the capital outlay provided to them for the financial year 2020-21 is spent properly and within time. Sitharaman said that better performance of CPSEs can help the economy to recover from the impact of Covid-19 in a big way.
Earlier, on July 7, Sitharaman held meeting with Secretaries of Ministries of Oil, Power, Coal, Mines and Atomic Energy and the CMDs of 23 CPSEs belonging to these Ministries. In FY 2019-20, against the target of ₹1.65-lakh crore for the 23 CPSEs, the achievement was around ₹1.66-lakh crore. However, during first three months of this fiscal, these companies managed to spend ₹20,202 crore (12 per cent of the target) as against ₹26,320 crore during corresponding period of last fiscal and it was 16 per cent of target.