PSU Capex
PSUs' capex surges in Sept, cos spend INR 3.85 tln Apr-Sept, 49% of FY26 aim
This story was originally published at 14:44 IST on 9 October 2025
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NEW DELHI – Capital expenditure by large state-owned companies surged in September, with these companies cumulatively spending INR 3.85 trillion in the first six months of the year, 49% of the full year's aim of INR 7.85 trillion, data from the Department of Public Enterprises showed. In September, PSUs spent a whopping INR 1.13 trillion as against the INR 707.26 billion spent last year. These PSUs had spent INR 3.38 trillion in Apr-Sept last year, making up 43% of FY25 aim.
The finance ministry tracks capital expenditure of public sector companies that have an annual investment target of over INR 1 billion. The Union Budget for 2025-26 (Apr-Mar) set a cumulative capital expenditure target of INR 9.67 trillion for all public sector undertakings, up 4% on year. Of the total, state-owned companies with over INR 1 billion annual capital expenditure target account for INR 7.85 trillion.
Of the total INR 9.67 trillion capital expenditure by the large PSUs, INR 5.01 trillion will come from Budgetary support in the form of equity and INR 338.87 billion in the form of loans.
The performance of public sector companies is monitored by the government, which has been trying to push capital expenditure to spur private investment. In the past six years, the government has increased the Centre's capital expenditure by nearly four times. In the year ended March, these large public sector enterprises spent INR 8.07 trillion collectively, overshooting the revised target of INR 7.87 trillion. End
Reported by Priyasmita Dutta
Edited by Vandana Hingorani
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