*Railways Spearhead Robust Growth in Capital Expenditure (capex) for FY24*
The Ministry of Finance has reported an impressive surge in capital expenditure (capex) by 54 large Central Public Sector Enterprises (CPSEs) and five departmental arms with an annual capex target of ₹ 100 crore and above. As of August in the current financial year, capex has reached approximately 42.5 per cent of their annual target, amounting to about ₹ 3.1 trillion. This marks a substantial 37 per cent growth compared to the same period in FY23.
The Centre is strongly encouraging major public undertakings in the infrastructure and refinery sectors to achieve 90 per cent of their targets by the end of the third quarter, reflecting the government's commitment to bolstering national infrastructure.
Key Highlights:
• Railways: Excluding the Dedicated Freight Corridor Corporation of India and Kolkata Metro Rail Corporation, the Railway Board has spent approximately ₹ 1.13 trillion (46.6 per cent) of the capex target of approximately ₹ 2.44 trillion.
• National Highways Authority of India (NHAI): NHAI has expended around ₹ 75,168 crore (46.4 per cent) against its annual capex target of about ₹ 1.62 trillion in the first five months of FY24.
• Indian Oil Corporation (IOCL): IOCL achieved 51 per cent of its capex target of roughly ₹ 30,395 crore, driven by the resumption of work on pipeline projects and the expansion of refining capacity.
• Oil and Natural Gas Corporation (ONGC): India's largest crude oil and natural gas producer, onGC, has expended approximately ₹ 12,791 crore in the first five months against the annual capex target of ₹ 30,125 crore.
• National thermal Power Corporation (NTPC): NTPC managed to achieve 29 per cent of its annual target of ₹ 22,454 crore.
• HPCL and BPCL: Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) spent around ₹ 6,024 crore (59 per cent) and ₹ 3,278 crore (33 per cent), respectively, of their annual target.
The capex report of these CPSEs is subject to review by the Prime Minister’s Office (PMO) on a monthly basis, underlining the government's commitment to prudent financial management.
In the Union Budget 2023-24, Finance Minister Nirmala Sitharaman announced an impressive 33 per cent increase in the capex outlay, amounting to approximately ₹ 10 trillion.
The Centre's emphasis on capex-led recovery signifies a proactive approach to stimulate the economy, especially as private sector investments may be subdued.
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Date: September 13, 2023
PR No. 2023/09/25
This press release is issued by the Public Relations department, Central Railway, Chhatrapati Shivaji Maharaj Terminus Mumbai.
