CPSEs’ capex nears revised annual target with a month to spare

With strong support from energy companies, overall capital expenditure by Central Public Sector Enterprises (CPSEs) and four government organisations have almost achieved their revised target a month before the end of the fiscal year, data from Public Enterprises Department of Finance Ministry showed.

However, it is important to note that overall target has now been lowered to nearly ₹7.47 lakh crore from ₹7.85 lakh crore for 60 CPSEs, including four organisations from 18 central ministries and departments. Data showed these entities spent nearly ₹7.40 lakh crore during 11 months of current fiscal, which is over 99 per cent of the revised target. This is almost like actual during corresponding period of last fiscal. In the last fiscal, these entities achieved 102 per cent of the target and officials expect that same for the current year too.

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February saw expenditure of over ₹72,000 crore, which is the highest in three months of the current fiscal and the second highest in the current fiscal. It is Important to note here that CPSE such as NLC, and NTPC and one government organisation (NHAI) have already exceeded their annual targets. NLC (formerly Neyveli Lignite Corporation) was at top followed by Hindustan Petroleum and NTPC. Mean­while, the NHAI and Railway Board spent around 120 per cent and 90 per cent of their respect­ive tar­gets.

Prof­it­able growth

CPSEs are encour­aged to take up capex to achieve prof­it­able growth in their busi­ness. A large capex cre­ates growth oppor­tun­it­ies and fur­ther employ­ment. Sev­eral key per­form­ance indic­at­ors (KPIs) have been included in the annual MoU frame­work for CPSE eval­u­ation. This includes capex, return on net­worth or return on cap­ital employed, export and import as per cent of rev­enue, EBIDTA as per cent of rev­enue and asset turnover ratio.

This data has come at a time when capex of the Cent­ral gov­ern­ment surged by over 11 per cent during April-January period of FY26 compared to the corresponding period of FY25, as reported by Controller General of Accounts (CGA). Key contributions came from Railway (89 per cent of the Revised Estimates), Road (86 per cent of the Revised Estimates) and Capital Outlay on Defence Services (78 per cent of the Revised Estimates), besides others.

Government has revied the capital expenditure during current fiscal to ₹10.96 lakh crore of which over ₹8.42 lakh crore has been spent during April-January period. Higher spend­ing by infra­struc­ture min­is­tries is expec­ted to have a pos­it­ive impact on the over­all growth num­ber.

Higher spend­ing by CPSEs and gov­ern­ment organ­isa­tions are crit­ical as not much improve­ment is seen in the private capex. It may be noted that a for­ward­ look­ing sur­vey on private capex invest­ment inten­tions by the Min­istry of Stat­ist­ics and Pro­gramme Imple­ment­a­tion indic­ated around 25 per cent decline in inten­ded private capex in FY26 to ₹4.88 lakh crore as against ₹6.56 lakh crore in FY25.

Published on March 8, 2026