FM Nirmala Sitharaman encourages CSPEs to perform better to meet Q3 CAPEX target

Today, Finance Ministry released a statement that in the financial year (2020-21) out of the capital expenditure (CAPEX) target of Rs 61,483 crore for 10 Central Public Sector Enterprises (CPSEs) belonging to Ministries of Power, Mines and Department of Atomic Energy, the achievement was Rs 24,227 crore (39.4%).

To review the capital expenditure (CAPEX) in this financial year, Nirmala Sitharaman Finance Minister held a video conference with Secretaries of the Ministries of Power, Mines and Department of Atomic Energy and the CMDs of 10 CPSEs belonging to these ministries.

Sitharaman appreciated the efforts of the ministries and CPSEs for making visible efforts to meet out the CAPEX targets. However, she said, “More efforts were required to achieve the target of 75 per cent CAPEX by Q3 and more than 100 per cent by a quarter four of the FY21.”

While reviewing the performance of CPSEs, Sitharaman said CAPEX by CPSEs is a critical driver of economic growth and need to be scaled up for the Financial Year (FY) 2020-21 and 2021-22. She encouraged the 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.”

Sitharaman added, “To achieve targets and to ensure that the capital outlay provided to them for the year 2020-21 is spent properly and within time,” while reviewing the performance of CPSEs, “CPSEs is a critical driver of economic growth and need to be scaled up for the Financial Year (FY) 2020-21 and 2021-22.”

She asked the secretaries to closely monitor the performance of CPSEs in order to achieve the target of CAPEX and make a plan for it. And also asked them to proactively sort out the unresolved issues of the CPSEs.

This was the fifth meeting in the ongoing series that the Finance Minister is having with various stakeholders to accelerate the economic growth in the background of COVID-19 pandemic.

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