Large central public-sector entities \u2013 companies and undertakings (CPSEs) \u2013 achieved 67% of their capital expenditure target for FY21 in April-January of the financial year by spending Rs 3.35 lakh crore, according to official sources. This is indeed a creditable achievement in the pandemic-ravaged year, as it reflects a sharp pick-up after the lockdown period (Q1 capex by these entities were just 7% of the annual target) and its immediate aftermath.<\/p>\n
The normal pace of CPSE capex in the crisis period is catalysed by the Centre\u2019s constant prodding and monitoring of projects.<\/p>\n
The question, however, is whether most of the large CPSEs \u2013 all with annual capex budget of Rs 500 crore or more \u2014 will be able to sustain the capex pace in FY22. Aggressive investments over the last few years, designed to compensate for the sharp fall in private investments and arrest the fall in investment rate, have depleted the cash reserves and surpluses of many of these entities. This means to maintain the capex levels in FY22 and beyond, they will have to raise resources through augmented borrowings and proactively use the asset monetisation route.<\/p>\n","protected":false},"excerpt":{"rendered":"
Large central public-sector entities \u2013 companies and undertakings (CPSEs) \u2013 achieved 67% of their capital expenditure target for FY21 in April-January of the financial year by spending Rs 3.35 lakh crore, according to official sources. This is indeed a creditable achievement in the pandemic-ravaged year, as it reflects a sharp pick-up after the lockdown period (Q1 capex by these entities were just 7% of the annual target) and its immediate aftermath. The normal pace of CPSE capex in the crisis period is catalysed by the Centre\u2019s constant prodding and monitoring of projects. The question, however, is whether most of the […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,197,138],"tags":[],"class_list":["post-399947","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-roads-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/399947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=399947"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/399947\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=399947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=399947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=399947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}