Capital expenditure by Central Public Sector Enterprises (CPSEs), Indian Railways and the National Highways Authority of India reached Rs 5.04 lakh crore in the first eight months of FY26, achieving 64% of the annual target.

This marks a 14% on-year growth in spending during April–November 2025, signalling stronger project execution and improved financial utilisation. In the same period last year, capex stood at Rs 4.41 lakh crore, or 56% of the FY25 target. For FY26, these entities together aim to invest Rs 7.85 lakh crore.

Railways and NHAI key drivers

Indian Railways and NHAI remain the key drivers of public capital spending, accounting for an estimated Rs 4.4 lakh crore, or 56% of the total FY26 target for CPSEs and other central agencies. Largely funded through the Union Budget, the two entities also constitute nearly 40% of the Centre’s overall capex estimate for the year.

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Officials attribute the sustained overall momentum to quicker project approvals, tighter monitoring systems and a renewed focus on completing ongoing infrastructure works ahead of the final quarter.

CPSE positioned to surpass last year’s performance

With three months left in the fiscal year, CPSEs appear well-positioned to surpass last year’s performance, reinforcing the government’s commitment to public capital investment as a key engine of economic growth. The robust capex cycle is expected to generate strong multiplier effects across sectors, particularly boosting demand for steel, cement, machinery and construction services.

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Petroleum sector enterprises, which typically rely on internal resources and borrowings, are projected to invest around Rs 1.3 lakh crore in FY26. Sectors such as power, coal and steel are also expected to maintain strong investment activity as capacity expansion and modernisation efforts continue.

In FY25, state-run entities had invested Rs 8.1 lakh crore, exceeding the target by 3%. Given the progress so far, they are on track to surpass the FY26 target as well, supporting the government’s broader public capex-led growth strategy.