New Delhi: Finance Minister Nirmala Sitharaman held the fourth CPSE capital spending review meeting on Monday.
Sitharaman had held a videoconference with secretaries from the Ministries of Oil and Natural Gas and the Ministry of Coal, together with the CMDs of 14 CPSEs belonging to these Ministries.
This was the fourth in the ongoing series of meetings the Minister of Finance is having with various stakeholders to accelerate economic growth in the context of the Covid-19 pandemic.
In fiscal year 2019-20, versus the capital expenditure target of ₹1,11,672 crore for these 14 CPSE, the achievement was ₹1,16,323 crore, that is, 104%. Fiscal year 2019-20, the first semester achievement was ₹43,097 crore (39%) and the achievement of fiscal year 2020-21, H1 is ₹37,423 crore (32%). The Capex target for 2020-21 is ₹1,15,934 crore.
Reviewing the performance of the CPSEs, Sitharaman said that the capital spending of the CPSEs is a critical driver of economic growth and should be scaled up for fiscal year 21 and 22. The Minister of Finance asked interested Secretaries to monitor as Close the performance of the CPSE in order to guarantee capital expenditure in the amount of 75% of the capital expenditure by the end of Q3FY21 and make an appropriate plan for it. Sitharaman stated that more coordinated efforts are required at the secretary levels of the concerned ministries and the CMD of the CPSEs to achieve the CAPEX objectives.
While mentioning the important role of the CPSEs in driving the growth of the Indian economy, the Minister of Finance encouraged the CPSEs to perform better to achieve their objectives and ensure that the capital outlay for Fiscal Year 21 is spent properly and within weather. Sitharaman said that better CPSE performance can greatly help the economy recover from the impact of COVID-19.
The CAPEX review of the CPSE is carried out jointly by the Department of Economic Affairs and the Department of Public Enterprises.
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