Central public sector enterprises (CPSEs) and other state-run agencies, namely the railways and the National Highways Authority of India (NHAI), have reported an aggregate capex growth of 15% in the first quarter of the current financial year.
Their capital expenditure achievement in Q1FY26 was Rs 1.67 lakh crore or 21.34% of the annual target, compared with Rs 1.46 lakh crore or 18.5% of the corresponding target achieved in the year-ago period.
The CPSEs and other agencies with annual capex targets of Rs 100 crore and above have set a combined target of investing Rs 7.85 lakh crore for FY26. In FY25, these state-run entities invested Rs 8.1 lakh crore, or 103% of the target of Rs 7.86 lakh crore.
In FY26, Railways and NHAI capex is estimated to be Rs 4.4 lakh crore or 56% of the state-run agencies’ capex target for FY26. These two entities are funded through the budget and account for 40% of the Centre’s capex estimate for FY26.
Petroleum sector undertakings, which largely invest from their own accruals and borrowings, in aggregate, are estimated to invest Rs 1.3 lakh crore in FY26.
The Centre is following a public capex – the union government, states and public enterprises—led economic growth revival. The Centre’s capital expenditure surged by 54% in April-May 2025, this was partly due to a low base.