Central public sector enterprises (CPSEs) achieved nearly 60 per cent of their FY27 annual capital expenditure target of ₹8.43 trillion during the April-October period, keeping the pace of public investment broadly in line with the previous year.
Capital expenditure by 63 CPSEs tracked by the Department of Public Enterprises (DPE) under the Ministry of Finance rose nearly 13 per cent year-on-year (Y-o-Y) to around ₹5.03 trillion during April-October. In the corresponding period of FY26, CPSEs had achieved nearly 59 per cent of their full-year target.
For October, capex by the CPSEs was up nearly 26 per cent Y-o-Y at ₹73,311.25 crore, according to the latest data available with the DPE.
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).
Disaggregated CPSE-wise capex data, which were available with the finance ministry’s DPE only till September, showed that the Railway Board and the National Highways Authority of India (NHAI) were among the top spenders among CPSEs in the first six months of the financial year. 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.
NTPC (formerly known as National Thermal Power Corporation) and Power Grid Corporation of India were also among the top five CPSEs in terms of capex, having met 71 per cent and 43 per cent of their targets, respectively, in the first six months of the year.
State-owned oil companies also maintained investment momentum despite under-recoveries this year amid elevated crude oil prices and supply disruptions triggered by the West Asia conflict.
Oil and Natural Gas Corporation (ONGC), with 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 in the first six months of the financial year.
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 ₹6.55 trillion during April-September, achieving nearly 54 per cent of the annual target, according to the latest data from the Controller General of Accounts (CGA).
