At Rs 1.37 trn, CPSE capex off to a strong start in Q1

Public capex, which has held fort in recent years when private investments faded, remained robust in the first quarter of the current financial year. Central public sector enterprises (CPSEs) and other large government undertakings like the Railways and the National Highways Authority of India (NHAI) achieved 21% of their combined annual capital expenditure target in the first three months of the current financial year, by spending Rs 1.37 trillion, according to official sources. A year ago, just 16% of the annual target was met by a comparable set of entities.

Moreover, Railways and NHAI, the two largest public-sector investors which play a key catalytic role in crowding in capex from assorted other entities, reported impressive capex growth rates of 73% and 44%, respectively, during Q1FY23. Given that the first quarter is usually weak for the delays in release of funds, this is a remarkable feat and signals accelerated momentum in public capex.