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Informist, Friday, Aug. 29, 2025

 

--MoS finance: Urge PSUs to raise capex to boost efficiency, production 

--CONTEXT: MoS Finance Chaudhary speaking at PSU awards event 

 

NEW DELHI – After delivering strong results in the past and aiding India's growth story, Minister of State for Finance Pankaj Chaudhary Friday urged the chief executive officers and managing directors of public sector enterprises to increase their capital expenditure in order to modernise and renew operations to continue contributing to economic growth. PSUs should come and invest with new energy, aligning with 'Viksit Bharat' goals to work in the direction of value creation, Chaudhary said while speaking at a PSU award event here. 

 

Public sector enterprises are set to spend INR 9.67 trillion as capital expenditure in 2025-26 (Apr-Mar), according to Budget documents. Till July, PSUs have collectively spent INR 2.21 trillion as capex, or 28% of the INR 7.85 trillion capex tracked by the Department of Public Enterprises. The department tracks spending of companies that have a capital outlay of above INR 1 billion.  

 

Chaudhary said that with strong fundamentals, PSUs are giving huge results in the form of not just production and operation, but second order output like dividends to government and investors and robust investment under their corporate social responsibility. "In the last five years, PSUs have spent over INR 230 billion for CSR, adding to social development," he said. 

 

The Budget for 2025-26 (Apr-Mar) projected dividends from public sector enterprises at INR 690 billion, up 25.5% from the revised estimate for FY25. The government-owned companies, even with a market capitalisation of only 10% of the total market cap, paid INR 1.50 trillion aggregate dividend in FY25, which was 25% of the overall dividend paid by all listed companies, Divestment Secretary Arunish Chawla had said in April.  End

 

Reported by Priyasmita Dutta

Edited by Deepshikha Bhardwaj

 

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