FM reviews capex plans of CPSEs, stresses on meeting FY21 target
New Delhi: Finance Minister Nirmala Sitharaman on Thursday reviewed capital expenditure plans of PSUs belonging to large infrastructure ministries, including steel and railways, and asked them to chase their FY21
targets to lift the economy amid challenges posed by COVID-19.
This was the second meeting in the ongoing series of review meetings that the finance minister is conducting with various stakeholders to accelerate the economic growth in the background of COVID-19 pandemic. The first meeting was held earlier this month in which heads of 23 Central Public Sector Enterprises (CPSEs) participated for the review of their capex plans.
The virtual meeting to review capital expenditure was attended by secretaries of the ministries of civil aviation and steel, the Chairman Railway Board (CRB), as well as the CMDs of seven CPSEs belonging to these ministries, an official statement said.
The combined capex (capital expenditure) target for 2020-21 for these seven CPSEs is Rs 24,663 crore. In 2019-20, against the capex target of Rs 30,420 crore for these seven CPSEs, the achievement was Rs 25,974 crore i.e. 85 per cent.
During the first quarter of 2019-20, achievement was Rs 3,878 crore (13 per cent) and achievement of Q1 of FY 2020-21 is Rs 3,557 crore (14 per cent).
Sitharaman directed the secretaries and the Chairman Railway Board to closely monitor the performance of CPSEs in order to ensure capital expenditure of 50 per cent of capital outlay by the end of Q2 of FY 2020-21 and make appropriate plan for it.
The CPSEs also discussed constraints being faced by them especially due to the COVID-19 pandemic.
The finance minister stated that unresolved issues should be flagged immediately to the Department of Economic Affairs, Department of Public Enterprises and Department of Investment and Public Asset Management for immediate action.
"Extraordinary situation requires extraordinary efforts and with collective efforts, we will not only perform better but also help the Indian economy to achieve better results,"
she said.
