Various CPSEs have earmarked funds for expansion and capacity enhancement for the current financial year.
Top finance ministry officials are meeting the heads of central public sector enterprises (CPSEs) to expedite capital expenditure in the country. Atanu Chakraborty, Secretary DEA and GC Murmu, Expenditure Secretary, are co-chairing a meeting with CPSEs heads and financial advisors (FAs) of infrastructure ministries to review capital expenditure push, pending payment position to vendors, and the status of current year projects, a statement said. The Finance Ministry on Thursday had also reviewed capital expenditure being done by various ministries.
Notably, the Centre has a capital expenditure plan of Rs 3.3-lakh crore -- including that of the Ministry of Railways and Road Transport -- for the current financial year. Also, various CPSEs have earmarked funds for expansion and capacity enhancement. The ministry officials will also review the progress made by these CPSEs about their capital expenditure envisaged for the current fiscal.
As the private sector continues to struggle due to poor demand and declining sales, the government wants to utilise CPSEs' spending powers to boost liquidity, say experts. Today's meeting is also a part of the series of meetings being held at the finance ministry to revive the sagging economy.
India's GDP growth during April-June period slipped to a 6-year low of 5 per cent compared to 5.8 per cent in the previous quarter, weighed down by a slump in manufacturing output, weak consumer demand and deceleration in private investment. The economic downturn has particularly hit auto, manufacturing and real estate sectors.
Last Friday, Finance Minister Nirmala Sitharaman announced the merger of 10 public sector banks to create four financially sound banks. A week before that, she announced a series of measures, including the rollback of super-rich tax on foreign and domestic equity investors, exemption of start-ups from 'angel tax', a package to address distress in the automobile sector, and more.