CPSEs on Track to Exceed Capex Targets
India's Central Public Sector Enterprises (CPSEs) are set to exceed their capital expenditure targets for the fourth straight year. This sustained public sector investment is a key driver of infrastructure and industrial growth, providing a buffer against private sector slowdowns.
By February of the current fiscal year, large Central Public Sector Enterprises (CPSEs) and key government bodies like the Railway Board and NHAI had already utilized 99% of their annual capital expenditure target, spending ₹7.39 lakh crore out of a revised goal of ₹7.47 lakh crore. February's expenditure alone, over ₹72,000 crore, was a 9.69% year-on-year increase, signaling a strong final push for the fiscal period. The infrastructure and energy sectors are the primary drivers of this spending surge. The National Highways Authority of India (NHAI) has been a standout performer, spending approximately 120% of its target. Other major contributors include NTPC, Indian Oil Corporation, ONGC, and Coal India, reinforcing the government's focus on these core areas. This performance builds on a consistent trend. In the 2023-24 fiscal year, CPSEs achieved a remarkable ₹8.05 lakh crore in capital expenditure against a target of ₹7.41 lakh crore — an over 108% achievement. The year prior, FY23, saw spending cross 100% of the estimate, with ₹6.48 lakh crore spent against a ₹6.45 lakh crore target. This robust public investment is occurring as private sector capital expenditure shows signs of contraction. A forward-looking survey projected a potential 25% decline in intended private capex for the current fiscal year, dropping to ₹4.88 lakh crore from ₹6.56 lakh crore previously. The Department of Public Enterprises (DPE), under the Finance Ministry, actively monitors this expenditure to ensure timely and effective investment in critical sectors. The government has also been empowering
