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Spending 50% of capex target by September: An uphill task for PSUs

Union Finance Minister Nirmala Sitharaman had earlier this week asked public sector companies to undertake half their capex for the current year by September.

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More than 50 per cent of NMDC’s FY21 capex is for the steel plant, which is likely to be commissioned in October-November this year

Amritha Pillay Aditi Divekar Mumbai

4 min read Last Updated : Jul 10 2020 | 6:05 AM IST

India’s top state-run companies in oil, power, metals, and mining have a capital expenditure (capex) of Rs 1.22 trillion on the go for this financial year but experts see execution challenges in the Union finance ministry’s recent directive asking them to expedite the spending.

Most of the first quarter saw lockdown-related challenges, and various states are yet to completely unlock. Besides, labour shortage continues and work-related travel is still to normalise. With the current restrictions and time lost in the June quarter, the September deadline would be an uphill task, analysts add.

Union Finance Minister Nirmala Sitharaman had earlier this

Topics : Capital Expenditure Coronavirus Nirmala Sitharaman Lockdown public sector undertakings Indian Economy Finance Ministry ONGC HPCL BPCL IOCL Coal India NTPC NMDC

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