Nirmala Sitharaman urged CPSEs to increase CAPEX to revive economic growth

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She said more co-ordinated efforts are required at the levels of secretary of concerned Ministries and CMDs of CPSEs to achieve CAPEX targets

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Monday urged the Central Public Sector Enterprises (CPSEs) scape up the capital expenditure for the financial years 2021 and 2022 to revive economic growth in the country.

Speaking at a video conference with the secretaries of the Ministries of Petroleum and  Natural Gas and Coal, along with the chairman and managing directors (CMDs) of 14 CPSEs belonging to these ministries, Sitharaman said that capital expenditure of the PSUs are critical driver of economic growth.

“Better performance of CPSEs can help the economy in a big way to recover from the impact of COVID-19,” Sitharaman said.

The meeting was for reviewing the capital expenditure (CAPEX) during this financial year.

This was 4th in the ongoing series of meetings that the finance minister is having with various stakeholders to accelerate the economic growth in the background of COVID–19 pandemic.

In FY 2019-20, against the CAPEX target of Rs 1,11,672 crore for these 14 CPSEs, the achievement was Rs 1,16,323 crore i.e. 104 percent. FY 2019-20, H1 achievement was Rs 43,097 crore (39 percent) and achievement of FY 2020-21, H1 is Rs 37,423 crore (32 percent). CAPEX target for 2020-21 is Rs 1,15,934 crore.

The finance minister asked the secretaries concerned to closely monitor the performance of CPSEs in order to ensure the capital expenditure to the tune of 75 percent of the capital outlay by the end of Q3 of FY 2020-21 and make appropriate plan for it.

Sitharaman expounded that more co-ordinated efforts are required at the levels of secretary of concerned Ministries and CMDs of CPSEs to achieve CAPEX targets.

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 for FY 2020-21 is spent properly and within time.

The CPSEs CAPEX review is carried out jointly by Department of Economic Affairs and Department of Public Enterprises.

Image credit: PIB

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