FM Nirmala Sitharaman asked PSUs to meet their capex target

Financial Minister Niramala Sitaraman has asked all the PSUs to meet their capex target. According to her this will recover Indian economy from Covid 19 crisis.

FM Nirmala Sitharaman asked PSUs to meet their capex target. She has suggested Public sector units to meet their capex target. In order to receive Economic Aid. Which has faced severe thrash from Corona Virus crisis. This was issued in the FM Nirmala Sitaraman  annual monetary issue.

The Center is intended to achieve the target of Rs. 4.12 Lakh Crore for FY 21.

Advertisement

In a video conference with the CMDs of 13 Central Public Sector Enterprises Finance Minister reviewed 1.65 Lakh Crore capex plan for this fiscal. The ratio of public capex among CPSE, state budget and central budget has 5:5.5:3.5

While the states have reduced their capital expenditure in FY 20, CPSEs can prevent the the public expenditure from losing its share in GDP. It is reported that the sates which were estimated  to spend 5.8 Lakh Crore in Capital have halted all their plans till FY 21. This is due to the shortage of revenues due to the COVID-9 crisis.

The GDP will contract between 4 and 6% as predicted by IMF, World Bank and many rating agencies. Moreover in FY 20 GDP growth rate was lowest at 4.2% in decades.

Sitharaman has encouraged CPSEs to be target specific and perform better, as they have the potential to recover the already downgraded economy of the country.

The CPSEs are to invest 4.49 Lakh Crore from internal actuarial and borrowings