On PSU capex push: Oil, highways, rail set the pace; steel, green power trail
- Public sector oil and gas companies in India are ahead in achieving their cumulative capital expenditure (capex) targets for the current financial year ending March (FY24).
Key Points
- In the first eight months of FY24, 10 oil and gas PSUs achieved 76.6% of their cumulative capex target of Rs 1.07 lakh crore, spending Rs 81,828 crore.
- The focus on capacity expansion in exploration, production, refining, petrochemicals, fuel retail, and gas infrastructure aims to meet the country's rising energy demand.
Government's Emphasis on Capex
- Increasing government capex is a crucial strategy to stimulate economic growth and attract private sector investment.
Comparison Across Ministries
- The petroleum ministry ranks third in terms of PSU capex targets, with the railway and roads transport and highways ministries leading.
- Only the shipping ministry exceeds the petroleum ministry in percentage achievement, with Cochin Shipyard achieving 87.6% of its Rs 300 crore capex target.
Challenges in Other Infrastructure Ministries
- Ministries like renewable energy, steel, and power face challenges in meeting their capex targets.
- Solar Energy Corporation of India (SECI) achieved only 14.2% of its Rs 2,051 crore capex target by November.
Prelims Takeaway
- Renewable energy
- Capex