CPSEs Reach 60% of FY27 Capital Expenditure Target by October

Central public sector enterprises (CPSEs) have completed close to 60 percent of their capital expenditure target for the fiscal year 2027 during the seven-month period from April to October. With an annual capex goal set at ₹8.43 trillion, these enterprises have spent approximately ₹5.03 trillion, reflecting a sustained investment pace similar to the previous year.

The Department of Public Enterprises (DPE), operating under the Ministry of Finance, monitors capital spending among 63 CPSEs. According to the latest data, capital expenditure rose by about 13 percent year-on-year compared to the same period in the previous fiscal year. In FY26, CPSEs had achieved nearly 59 percent of their annual target by October, showing a consistent trajectory in public investment efforts.

October alone saw capital spending increase by nearly 26 percent year-on-year, totaling ₹73,311.25 crore. This uptick highlights the steady momentum maintained by these government-controlled firms amid a dynamic economic environment.

Capital expenditure is a vital metric under the DPE’s annual Memorandum of Understanding (MoU) framework, which also includes performance indicators such as return on net worth and earnings before interest, taxes, depreciation, and amortisation (EBITDA). These measures collectively assess the operational and financial health of CPSEs.

Detailed data available up to September reveals that the Railway Board and the National Highways Authority of India (NHAI) ranked among the highest spenders. The Railway Board allocated ₹1.88 trillion, covering 64 percent of its yearly target, while NHAI's expenditure reached ₹85,228 crore, representing 46 percent of its FY27 goal.

Other major contributors include NTPC (formerly National Thermal Power Corporation) and Power Grid Corporation of India. By September, NTPC had met 71 percent of its capital expenditure target, while Power Grid completed 43 percent. These figures demonstrate a focused effort by key infrastructure and energy sector CPSEs to advance their investment plans during the first half of the year.

State-owned oil companies have also sustained their investment drive despite challenges such as fuel under-recoveries and supply disruptions caused by geopolitical tensions in West Asia. Oil and Natural Gas Corporation (ONGC) invested ₹14,552 crore in the first half, achieving nearly half of its annual capex target and ranking among the top five spenders. Bharat Petroleum, Indian Oil, Hindustan Petroleum, and Oil India each surpassed 40 percent of their respective yearly targets within this period.

Public capital expenditure by the central government and CPSEs plays a significant role in India's broader investment-led growth strategy. By increasing government spending, authorities aim to encourage more private sector investment and stimulate economic activity. Since the onset of the Covid-19 pandemic, the central government has notably tripled its capital expenditure, reflecting a commitment to infrastructure development and economic recovery.

For FY27, the central government has set a capital expenditure goal of ₹12.22 trillion. Data from the Controller General of Accounts (CGA) indicates that ₹6.55 trillion was spent between April and September, representing about 54 percent of the planned outlay. This level of expenditure aligns with the ongoing focus on modernizing infrastructure, enhancing connectivity, and supporting various sectors critical to India's long-term growth.

Tracking capital expenditure trends among CPSEs offers valuable insight into the government's fiscal priorities and the progress of key projects. Maintaining such investment momentum will be essential as India navigates complex global economic conditions while striving to meet its development objectives.