FM Sitharaman tells PSUs ‘perform better, put in more effort’; asks to meet capital spending targets

FM Sitharaman encouraged the PSUs to perform better to achieve targets and to ensure that the capital outlay provided to them for the year 2020-21 is spent properly and within time.

PSUs, CAPEX, capital expenditure, capital outlay, economic development
The combined CAPEX target for FY 2020-21 for the 10 PSUs is Rs 61,483 crore.

Finance minister Nirmala Sitharaman today said that the capital expenditure by PSUs is a critical driver of economic growth, and need to be scaled up for the current and the next financial year. Appreciating the efforts of the ministries and PSUs for making visible efforts to meet out the CAPEX targets, FM Sitharaman said that more efforts are still required to achieve the target of 75 per cent CAPEX by Q3, and more than 100 per cent by Q4 of this fiscal year.

Sitharaman further encouraged the PSUs to perform better to achieve targets and to ensure that the capital outlay provided to them for the year 2020-21 is spent properly and within time, according to the Ministry of Finance. The combined CAPEX target for FY 2020-21 for the 10 PSUs is Rs 61,483 crore. So far, the overall achievement as of 23 November 2020 is Rs 24,227 crore, which is 39.4 per cent of the target.

She also asked secretaries to closely monitor the performance of PSUs in order to ensure that the CAPEX target is achieved and make plans for it. She also asked the Secretaries to proactively sort out the unresolved issues of the public sector firms. Meanwhile, the finance minister stated that with collective efforts, we will not only perform better but also help the Indian economy to achieve better results.

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FM Sitharaman was speaking via video conference with secretaries of the ministries of Power, Mines and Department of Atomic Energy, and the CMDs of 10 PSUs belonging to these Ministries, to review the capital expenditure in this financial year. This was the fifth in the ongoing series of meetings that the FM is carrying out with various stakeholders, in an effort to accelerate the economic growth in the background of the coronavirus pandemic.

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