Home / Economy / News / What explains Indian public sector enterprises' anaemic capex record?

What explains Indian public sector enterprises' anaemic capex record?

Instead of public sector enterprises making capex decisions, they have declared dividends in the last few years. The capex decisions have therefore been abrogated to itself by the Centre

Premium

6 min read Last Updated : Feb 07 2023 | 11:17 AM IST

The remarkable rise in capital investment by the government of India over the past few years has not been matched by a corresponding increase in capex by the central public sector enterprises (PSE).

In Budget FY24, Finance Minister Nirmala Sitharaman has projected she will spend Rs 10 trillion, following up on a spend of Rs 7.28 trillion in FY23. Taken from FY15, this is an over ten times rise, the most massive jump ever for any item in Indian public finance.

In contrast, as the table shows, the capex by all the 255 operational PSE has hardly risen. In the

Topics : Nirmala Sitharaman public sector enterprises Capex Indian Economy

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in