Investment by central government agencies and central public sector enterprises (CPSEs) rose 11.5% year-on-year to Rs 6.79 lakh crore in the first 10 months of the current financial year, reflecting a reversal of the trend of spending decline in most part of the year. The capex rise was aided by a spurt in spending by the National Highways Authority of India (NHAI) and ONGC.
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The NHAI has emerged as the top public sector investor overtaking the Railway Board in the first 10 months of FY25, according to government data. In April-January, NHAI capex rose by 34% year-on-year (y-o-y) to Rs 1.93 lakh crore, or 115% of the full-year aim of Rs 1.68 lakh crore. The railways’ investment, however, continued to decline with a 9% dip in April-January of FY25 at Rs 1.85 lakh crore. The railways has achieved 71% of the annual capex target of Rs 2.6 lakh crore. The railways and the NHAI’s investments have been funded through the Budget for the past few years. Both entities accounted for 55% of the CPSEs’ capex target for FY25. The slowdown in their capex had also affected the Centre’s capex in the first eight months of FY25.
The latest data showed that investment by Oil and Natural Gas Corporation (ONGC) surged by a whopping 184% to Rs 77,926 crore in the first 10 months of FY25. The CPSEs and other agencies with an annual capex target of at least Rs 100 crore each have set a combined target of investing Rs 7.8 lakh crore in FY25. The slowdown in public capex — that of the Centre, states and CPSEs — till November-December in the current financial year has been largely due to the impact of the general election and an extended monsoon.
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Fuel retailer-cum-refiner Indian Oil, which is investing heavily in expanding refining capacity and energy transition, achieved a capex of Rs 35,034 crore in the first 10 months of FY25. Investment by NTPC rose 11% y-o-y to Rs 28,974 crore in April-January of FY25.
States’ capital expenditures likely fell 4% y-o-y in the first nine months of the current financial year despite the Centre’s acceleration in capex loan to them,
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