FM: CAPEX by CPSEs is a critical driver of economic growth and needs to be scaled up for FY21, FY22

Sitharaman said, "CAPEX by CPSEs is a critical driver of economic growth and need to be scaled up for the FYs 2020-21 & 2021-22."

Nov 27, 2020 10:11 IST India Infoline News Service

Nirmala Sitharaman
The Finance Minister Nirmala Sitharaman on Friday, in a Video Conference with Secretaries of the Ministries of Power, Mines and Department of Atomic Energy and the CMDs of 10 CPSEs, reviewed the capital expenditure (CAPEX) in this financial year.

Sitharaman said, "CAPEX by CPSEs is a critical driver of economic growth and need to be scaled up for the FYs 2020-21 & 2021-22."

Acknowledging the efforts of the Ministries and CPSEs for making visible efforts to meet out the CAPEX targets, however, Sitharaman added, "more efforts are still required to achieve the target of 75% CAPEX by Q3 and more than 100% by Q4 of the FY 21."

The FM encouraged 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.

Also, the FM has asked the Secretaries to closely monitor the performance of CPSEs in order to ensure to achieve the target of CAPEX and make plan for it. She also asked the Secretaries to proactively sort out the unresolved issues of the CPSEs.

As of November 23, 2020, overall achievement was at Rs24,227cr which is 39.4% against the CAPEX target of Rs61,483cr for FY21. 

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