Investments by companies and departmental agencies of the Central government (CPSEs) fell by a third on year to Rs 96,000 crore in April-May of the current financial year, reflecting the impact of the slowdown in spending during general elections.

In April, the CPSEs’ investment showed an increase of 6.5% on-year to Rs 50,206 crore, before slowing down in May, the busiest period of the elections.

The CPSEs, having annual capex target of Rs 100 crore and above have set a combined target of investing Rs 7.8 trillion in FY25. Railways Board and the National Highways Authority of India, whose capex are largely funded through the budget, account for Rs 4.29 trillion or 55% of the CPSEs’ capex estimate for FY25.

Railway Board, the largest public sector investor spent around Rs 46,000 crore in April-May, around 19% lower than Rs 56,978 crore in the year-ago period. Railways Board which invested Rs 2.5 trillion in FY24, plans to invest Rs 2.6 trillion in FY25.

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Petroleum sector invested Rs 15,366 crore in April-May or 13% against their annual target of Rs 1,18,499 crore. The petroleum sector companies had invested Rs 14,713 crore or 14% of their FY23 target of Rs 1,06,401 crore in April-May.

ONGC, the top state-run player in oil and gas exploration, achieved a capex of Rs 5,375 crore in April-May, 11% more than the corresponding month a year ago.

Fuel retailer-cum-refiner Indian Oil Corporation achieved a capex of Rs 4,698 crore in the first two months of FY25, a decline of 8% on-year.

Among others, Hindustan Petroleum Corporation invested Rs 1,411 crore, Numaligarh Refinery Rs 1,000 crore and Bharat Petroleum Corporation Rs  822 crore in April-May 2024.

Thanks to a 9% growth in gross fixed capital formation led by public capex, India’s GDP grew by 8.2% in FY24, exceeding the expectations of both domestic and multilateral institutions.