Central public sector enterprises (CPSEs) achieved 51 per cent of their 2026-27 (FY27) capital expenditure (capex) target in the first half, keeping the pace of public investment broadly in line with the previous year.
Capital expenditure by 63 CPSEs tracked by the Ministry of Finance’s Department of Public Enterprises (DPE) rose nearly 12 per cent year-on-year (Y-o-Y) to around ₹4.30 trillion during April-September, or 51 per cent of their annual target of ₹8.43 trillion. In the corresponding period of FY26, CPSEs had achieved nearly 52 per cent of their full-year target.
However, capex fell 17 per cent Y-o-Y in September to ₹93,636.13 crore, according to DPE data released on Wednesday.
The Railway Board and the National Highways Authority of India (NHAI) accounted for the bulk of spending in the first half. The Railway Board spent ₹1.88 trillion, achieving 64 per cent of its annual target, while NHAI incurred capex of ₹85,228 crore, or nearly 46 per cent of its FY27 target.
Oil and Natural Gas Corporation (ONGC), with a capex of ₹14,552 crore in the first half, ranked among the top five CPSEs by spending and achieved nearly 49 per cent of its annual target. Bharat Petroleum, Indian Oil, Hindustan Petroleum and Oil India also achieved more than 40 per cent of their respective annual targets during April-September.
Capital expenditure is a key performance indicator under the DPE’s annual Memorandum of Understanding framework, alongside return on net worth and earnings before interest, taxes, depreciation and amortisation (Ebitda).
Public capex by the Centre and CPSEs remains a key part of India’s investment-led growth strategy, with higher government spending aimed at crowding in private investment. The Centre has tripled its own capital expenditure over the past five years following the Covid-19 pandemic.
For FY27, the Centre has set a capital expenditure target of ₹12.22 trillion. It spent ₹5.10 trillion during April-August, achieving nearly 42 per cent of the annual target, according to the latest data from the Controller General of Accounts.
