Finance Minister holds 2nd review meeting on CAPEX of CPSEs

Union Minister for Finance & Corporate Affairs of India hold a Video Conference with Secretaries of the Ministries of Civil Aviation, and Steel, and the Chairman Railway Board (CRB), along with the CMDs of 7 Central Public Sector Enterprises (CPSEs) belonging to these Ministries, to review the Capital Expenditure in this Financial Year (FY).

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Key-Points

This was 2nd 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 combined CAPEX target for FY 2020-21 for these 7 CPSEs is Rs. 24,663 crore. In FY 2019-20, against the CAPEX target of Rs.30,420 crore for these 7 CPSEs, the achievement was Rs. 25,974 crore i.e. 85 %. During Q1 of FY 2019-20, achievement was Rs. 3,878 crore (13%) and achievement of Q1 of FY 2020-21 is Rs. 3,557 crore (14%).

While mentioning the significant role of CPSEs in giving a push to the growth of the Indian economy, the Finance Minister encouraged the CPSEs to perform better to achieve their targets and to ensure that the capital outlay provided to them for the financial year 2020-21 is spent properly and within time.

The Finance Minister asked the concerned Secretaries and the Chairman Railway Board to closely monitor the performance of CPSEs in order to ensure capital expenditure of 50% of capital outlay by the end of Q2 of FY 2020-21 and make appropriate plan for it.

The CPSEs discussed constraints being faced by them especially due to COVID-19 pandemic. The Finance Minister stated that 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.