Page 3 - Capex Spending In India

At 23% spend, Andhra Pradesh leads laggards in state capex in FY23

Most large states have fallen behind their budgeted capex targets by a wide margin in FY23, which was pegged at Rs 7.4 lakh crore but could spend only Rs 5.71 lakh crore or 76.2 per cent only, according to an analysis. Only four states -- Karnataka, Sikkim, Arunachal and Bihar -- have over-achieved their targets, while Jharkhand and Madhya Pradesh's capex spending stood at 98 per cent each. Eleven states fared better with 80 per cent target achievements, as per the analysis by Bank of Baroda economists. As against this, in FY21, the underachievement level was a high 72 per cent, primarily due to the pandemic emergency spending, and had improved to 95 per cent in FY22. Surprisingly, none of the 25 states whose data are available has been able to achieve the target by even three-fourths as the peak success rate is only 72.4 per cent, according to the analysis. This is surprising as the Centre had disbursed the required amounts for the year. The poor show was led by Andhra, which cou

Delphi-TVS Technologies JV to take up capex worth 450 cr at Chennai plant

Delphi-TVS Technologies, a joint venture between diversified conglomerate TVS Group and auto-component major BorgWarner, has lined up investments worth about Rs 450 crore over the next three years to take up capital expansion plan at its manufacturing facility here. Delphi-TVS Technologies, which commenced production of common rail system in 2009 has reached milestone production of over three million common rail systems at its manufacturing facility in Oragadam, about 45 kms from here. "We continue to expand the production capacity in common rail systems at the plant. We expect to invest about Rs 150 crore every year over the next two-three years..." Delphi Technologies President A Viswanathan told reporters. The company caters to all sections of the diesel engine market including passenger cars, commercial vehicles, tractors, construction equipment and industrial engines. With the proposed investment plans, the company would be scaling up the production to a million units from the

Reserve Bank likely to help states to analyse, frame their capex numbers

As of now, the states are handicapped because there is no format they can borrow from the centre to guide them on tracking their capex except the financial support

New Delhi to meet fiscal target in coming year, capex a longer shot

A key government objective is to bring the deficit down to 4.5% of GDP by 2025/26. Respondents were evenly split on whether it would succeed

Union Budget 2023: Capital expenditure to be hiked by 33% to Rs 10 trillion

Budget 2023: PAN cards will be used as a common identifier for all government schemes, the FM said in her Budget speech

India Inc's capex juggernaut on the roll, says Economic Survey 2023

Private capex at Rs 3.3 trillion recovers in first half FY 2023 vs Rs 2.6 trillion in first half of 2022

Budget 2023-24: Centre to target higher capex but lower fiscal deficit

Budget 2023-24: The Centre is expected to peg the fiscal deficit target for FY24 below 6 per cent, and the capex is likely to jump 20-30 per cent

Best of BS Opinion: Capex push in states, Crisis in the Himalayas, and more

Here is the best of Business Standard's opinion pieces for today

Big states lag on capital expenditure front despite Centre's support

Economists say many poll-bound states chose to focus on scheme and subsidy spending

Asian Paints announces Rs 2,400-cr capex plans for two manufacturing units

Asian Paints on Thursday announced Rs 2,100 crore of phased investment to set up a new plant to produce vinyl acetate ethylene emulsion (VAE) and vinyl acetate monomer (VAM) in the country. The company also announced another Rs 550 crore of investment to set up a white cement plant in the UAE in partnership with two local firms there. The board has approved setting up of a manufacturing facility for VAE and VAM in the country. The company will invest around Rs 2,100 crore in the plant over the next three years, which includes the cost of land, the company informed the stock exchanges without giving other details like the location of the plant among others. The statement also said the plan is subject to entering into definitive agreements, including technology licence agreement from the US-based Kellogg Brown & Root, for manufacturing VAM and VAE and obtaining the necessary regulatory and other approvals. The proposed plant will have an installed capacity of 1 lakh tonne per annum .

13 states can incur capex worth Rs 7.4 trillion in FY23: ICRA report

Spending space available without pressure to their fiscal profile, says agency

Capex on new projects declines further in Q2 amid higher borrowing costs

Higher global borrowing costs are expected to affect growth prospects

Steel players' hopeful of export duty withdraw; okay with capex plans

Export duty imposed on certain steel products recently will not force steel makers to review their capital expenditure plans as top producers expect it to be a "short-term" move to stabilise inflation

Capital goods: Capex push likely in Union Budget to support growth

The Budget is expected to push public capital expenditure (capex) and simultaneously create a conducive environment for private capex

Cash flows and margins to guide start-ups, says Kumar Mangalam Birla

Competition for investment & FOMO have pushed up valuations, he says

Private sector investments yet to gather pace despite finmin optimism

Private sector prefers to be in wait-and-watch to see sustainability of demand and how markets play out as tapering sets in with most central banks

With little room left for govt capex, economy looks at private investments

However, low demand in the economy has been arresting fresh investments, and experts tracking India Inc have not seen any major announcement in this zone

Budget 2020: Railway capex may rise 18% to all-time high of Rs 1.9 trn

A major concern for the finance department of the railways is the decline in internal resources

Investment climate subdued on slower capital expenditure plans: Study

The country's investment climate during April-December period of this fiscal looks subdued with declining figures in announcement of new projects and the number of projects under execution.According to data by the Centre for Monitoring Indian Economy (CMIE), the value of investment in new projects during April-December was Rs 4.43 trillion, less than half of Rs 9.21 trillion in the comparable period of last fiscal. Moreover, the value of projects completed at Rs 2.83 trillion was down by 35.3 per cent from Rs 4.38 lakh crore in the year ago period.The valuation of dropped projects in the period under was 23 per cent higher at Rs 10.17 trillion compared with Rs 8.29 trillion.Credit growth in manufacturing sector was subdued till December. "The other sectors which could be linked with investment performed better like services and mortgages (within retail loans). There is however, no clear indication of such lending going for investment purposes", a report by CARE Ratings stated.The ...