CPSEs Spend Nearly 60% of Annual Capital Expenditure Target in 7 Months

Capital expenditure by 63 Central Public Sector Enterprises (CPSEs) reached about ₹5.03 trillion between April and October, against their FY27 target of ₹8.43 trillion, as per Business Standard news report.  

This was almost 60% of the annual target. Spending was 13% higher than a year earlier. By October last year, CPSEs had met nearly 59% of their full-year target. 

The Department of Public Enterprises (DPE), under the Ministry of Finance, tracks the figures. Capital expenditure is a performance measure under its annual Memorandum of Understanding framework. 

October Expenditure at ₹73,311 Crore 

CPSEs spent ₹73,311.25 crore in October, nearly 26% more than a year earlier. Monthly spending was ₹81,107.82 crore in April, ₹63,553.37 crore in May, ₹65,469.55 crore in June and ₹72,217.85 crore in July.  

It fell to ₹53,930.34 crore in August before reaching ₹93,636.13 crore in September. 

Railway Board, NHAI Among Major Spenders 

Company-wise figures available up to September show that the Railway Board spent ₹1.88 trillion in the first six months, meeting 64% of its FY27 target. The National Highways Authority of India (NHAI) spent ₹85,228 crore, or nearly 46% of its target. 

NTPC had met 71% of its annual target, while Power Grid Corporation of India had reached 43%. Both were among the five largest CPSEs by capital expenditure. 

Oil Companies Report Spending 

ONGC spent ₹14,552 crore in the first half, meeting nearly 49% of its annual target. Bharat Petroleum, Indian Oil, Hindustan Petroleum and Oil India had each crossed 40% of their respective targets.  

This was despite under-recoveries, elevated crude prices and supply disruptions linked to the West Asia conflict. 

Centre Spends 54% of Annual Target 

The Centre spent ₹6.55 trillion during April-September, meeting nearly 54% of its FY27 capital expenditure target of ₹12.22 trillion, according to the Controller General of Accounts. Its capital expenditure has tripled over the five years since the Covid-19 pandemic. 

The Centre's capital spending is intended to encourage private investment. 

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Conclusion  

CPSEs have maintained a spending pace close to the previous financial year, with October expenditure rising 26% year-on-year. The annual target stands at ₹8.43 trillion. 

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