Finance Minister Nirmala Sitharaman Asks State-Owned Firms To Increase Capex Spending
Finance Minister Nirmala Sitharaman has asked public sector companies to spend half of their targeted capex for the full fiscal by September as India looks for ways to boost spending to aid recovery from the Covid-19 crisis.
State-owned firms spent 12% of their full-year target of Rs 1,65,510 crore in April-June, according to a statement by the Ministry of Finance. Sitharaman asked secretaries of administrative departments to closely monitor their performance and prepare a plan to increase capex spending in the ongoing quarter.
Public sector companies have a very important role in pushing growth and a better performance by them can help the economy to recover from the impact of Covid-19 "in a big way", Sitharaman was quoted as saying. She met secretaries from ministries of petroleum and natural gas, and power, and chiefs of 23 government-owned companies.
Some PSUs highlighted shortage of manpower, delay in imports, delay in payments by distribution companies, among other issues.