Finance Minister tells CPSEs to put more efforts to achieve the target of 75 per cent CAPEX by Q3

In financial year (FY) 2020-21, against the capital expenditure (CAPEX) target of Rs 61,483 crore for 10 Central Public Sector Enterprises (CPSEs) belonging to Ministries of Power, Mines and Department of Atomic Energy, the achievement was Rs Rs 24,227 crore (39.4 per cent), Finance Ministry said in a statement here on Friday.

Finance Minister Nirmala Sitharaman held a video conference with Secretaries of the Ministries of Power, Mines and Department of Atomic Energy and the CMDs of 10 CPSEs belonging to these ministries, to review the capital expenditure (CAPEX) in this financial year.

Sitharaman appreciated the efforts of the ministries and CPSEs for making visible efforts to meet out the CAPEX targets. However, she said, “More efforts were required to achieve the target of 75 per cent CAPEX by quarter three and more than 100 per cent by a quarter four of the FY 21.”

While reviewing the performance of CPSEs, Sitharaman said CAPEX by CPSEs is a critical driver of economic growth and need to be scaled up for the Financial Year (FY) 2020-21 and 2021-22. She encouraged the CPSEs 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.”

Sitharaman asked the secretaries to closely monitor the performance of CPSEs in order to ensure to achieve the target of CAPEX and make a plan for it. She also asked them to proactively sort out the unresolved issues of the CPSEs.

This was fifth in the ongoing series of meetings that the Finance Minister is having with various stakeholders to accelerate the economic growth in the background of Covid-19 pandemic.

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