Investment by the Union government agencies and the central public sector enterprises (CPSEs) fell 10% on year to Rs 4.41 lakh crore in April-November of the current financial year as Railways and National Highways Authority of India (NHAI) were yet to regain the capex pace after election-induced slowdown.
Railways and NHAI’s investments are largely funded through the budget. Both entities accounted for 55% of the CPSEs’ capex target for FY25. The slowdown in their capex has also affected the Centre’s capex, which fell 12% in April-November of the current financial year.
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In April-November 2024, Railways Board capex fell by over 12.5% to Rs 1.49 lakh crore while NHAI investments dropped by 9.7% to Rs 1.04 lakh crore.
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Sources said railways and NHAI are accelerating their pace of capex in the remainder of the year to make up the shortfalls and meet their respective targets of Rs 2.6 lakh crore and Rs 1.68 lakh crore, respectively.
The CPSEs and other agencies with annual capex targets of Rs 100 crore and above have set a combined target of investing Rs 7.8 lakh crore for FY25.
The slowdown in public capex—Centre, states and CPSEs- so far in the current financial year has been largely due to the impact of the general election and extended rains.
Fuel retailer-cum-refiner Indian Oil Corporation, which is investing heavily in expanding refining capacity and energy transition, achieved a capex of Rs 27,274 crore in the first eight months of FY25, up 5% on-year.
The country’s top state-run explorer Oil and Natural Gas Corporation’s investment rose 16% on year to Rs 23,646 crore in April-November 2024.
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NTPC, which is expanding capacity across many of its pants and foraying into cleaner energy, investments rose 53% on year 20,206 crore in April-November 2024.
States’ capital expenditures likely fell by nearly 7% on-year in April-November of the current financial year while their borrowings dipped by 4%,
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