The large central public-sector entities companies and undertakings achieved 16% of their aggregate cost target for FY22 within the first three months of the present fiscal year, by spending Rs 93,000 crore, consistent with official sources.
The second Covid wave that disrupted an incipient economic revival, is often an honest number; these entities achieved almost 7% of the annual CAPEX target within the year ago when nation-wide lock-down brought economic doings to a standstill. With the government’s thrust on investment-led economic process revival, the finance ministry has recently asked the Central Public Sector Enterprises (CPSEs)and other agencies to accelerate the pace to realize the FY22 CAPEX target by the third quarter itself.
Joint capital expenditures by 40-odd large CPSEs and departmental undertakings, all with annual CAPEX budgets of above Rs 500 crore, are projected to be Rs 6 lakh crore in FY22, a rise of 30% on the year.
In April-June of the present fiscal year, the National Highways Authority of India (NHAI) has emerged because of the highest investor with Rs 30,000 crore or 25% of the complete year target of Rs 1.22 lakh crore. Railways investment is essentially within the laying of latest lines, doubling of tracks, augmenting traffic facilities, and construction of rail over bridges/road under bridges.
Upstream oil CPSE ONGC reported a CAPEX of about Rs 5,000 crore or about 17% of its FY22 CAPEX target of Rs 29,800 crore. The oil explorer’s CAPEX deployment was mainly in KG 98/2 Cluster II, Mumbai High South Redevelopment phase IV clinical trials, Life Extension of good platforms, and Heera Redevelopment Phase-III Project.
Fuel refiner-cum-retailer Indian Oil Corporation invested Rs 4,700 crore. It’s expanding the capacity of Barauni refinery from 6 million tonnes once a year (MTPA) to 9 MTPA, Panipat refinery from 15 MTPA to 25 MTPA, and Gujarat refinery from 13.7 MTPA to 18 MTPA.
In National Thermal Power Corporation, which is building a 1,980 MW thermal plant in North Karanpura, 1,600 MW Telangana power project, 300 MW Nokhra solar energy plant, and 300 MW Shimbhoo Ka Burj solar project invested Rs 4,500 crore or 19% of its annual CAPEX aim.
Devoted Freight Corridor Corporation, which is pointing to complete western and eastern devoted freight corridors by June 2022, has invested about 10% of its FY22 annual Capex target of Rs 20,000 crore.
CAPEX by CPSEs and other agencies has remained robust. It was Rs 4.6 lakh crore or 92% of the annual target for FY21; this was 4.3% above the capital expenditure by these entities in FY20.
Data gathered by FE of 15 major states shows that these states reported a combined CAPEX of Rs 26,115 crore in April-May of the present fiscal year, up 129% on the year. The surge is aided by a coffee base. In FY22, the union government’s cost grew 14% on year to Rs 62,961 crore.