Central public-sector entities – companies and departmental agencies (CPSEs) – achieved 109% of their combined capital expenditure target for FY24 by investing Rs 8.05 trillion, an all-time high.
These entities’ capex grew by 24% on year in FY24 compared with Rs 6.48 trillion in FY23. The capex target for the CPSEs and other agencies was set at Rs 7.42 trillion as per the FY24 revised estimate.
Most large CPSEs/agencies including railways, the National Highways Authority of India (NHAI), Indian Oil Corporation, Oil & Natural Gas Corporation (ONGC) and NTPC have achieved over 100% of their annual target in FY24.
There was a surge in capex in the FY24 terminal month of March with CPSEs investing Rs 1.22 trillion, an increase of 45% on year. Due to a surge in capex by railways and NHAI, largely funded from the Budget, the Centre’s capex exceeded the FY24 revised target of Rs 9.5 trillion.
The Railway Board invested Rs 2.49 trillion in projects or 102% of its annual target of Rs 2.44 trillion and 32% higher than in FY23. The Railways have been investing heavily in capacity improvement works such as doubling/quadrupling, electrification and introducing an array of high-speed trains.
NHAI has invested Rs 2.07 trillion or 124% of its annual target of Rs 1.67 trillion and 19% higher than FY23. The Centre’s large capex push through railways and NHAI also aids efforts to create more jobs.
Petroleum CPSEs are ramping up their refining capacity and green transition. Fuel retailer-cum-refiner IOC achieved a capex of Rs 42,581 crore or 136% of the FY24 target of Rs 31,254 crore.
ONGC, the top state-run player in oil and gas exploration, has achieved a capex of Rs 34,965 crore in FY24 or 115% of the annual target of Rs 30,500 crore.
Power generation major NTPC has invested Rs 26,088 crore in FY24, 116% of its annual target.
Real GDP growth in Q3FY24 was a surprising 8.4% on year, which was largely driven by higher gross fixed capital formation at 10.6% on year due to the Centre, states and CPSEs’ thrust on capex.