FM Sitharaman asks PSUs to meet at least half of FY21 capex

NEW DELHI: Finance Minister Nirmala Sitharaman today asked the secretaries from various administrative ministries to ensure that the seven state-owned companies under them meet at least half their capital expenditure targets for 2020-21 (Apr-Mar) by September.

Sitharaman, who is closely monitoring the performance of public sector undertakings, made these comments during a review meeting of these seven companies, along with the secretaries of the ministries of shipping, road transport and highways, housing and urban affairs, defence, and the Department of Telecommunications, through video conferencing.

As per a release by the government, the seven companies have spent 249.33 bln rupees in Apr-Jul, out of the total target of 1.25 trln rupees for 2020-21.

"Finance minister encouraged the CPSEs to perform better to achieve their targets and to ensure that the capital outlay provided to them for the financial year 2020-21 is spent properly and within time," the release said.

In 2019-20, these seven companies had spent 88.4% of their target of 1.30 trln rupees in capital expenditure. At the meeting today, the public sector companies discussed constraints being faced by them, especially due to the COVID19 pandemic. The finance minister said the extraordinary situation required extraordinary efforts, with collaborative work to help the economy achieve results.