Capital expenditures by CPSEs exceeded 28% of the set target during the April-July period.
In the first four months of the current fiscal year, capital expenditure (capex) by Central Public Sector Enterprises (CPSEs) and four key government agencies in India totaled approximately ₹2.21 lakh crore, marking a 2.5% year-on-year increase. This robust spending is expected to have a positive impact on the overall growth number, data for which will be released on August 29.
The Railway Board led the pack, with a capex of ₹79,152 crore in the first four months, followed by the National Highways Authority of India (NHAI) at ₹45,683 crore. Other significant CPSE spenders included ONGC, Indian Oil Corporation, NTPC, PowerGrid Corporation, BPCL, and Coal India.
The top spender among CPSEs, the Railway Board, accounted for 30% of the budget allocation, while Road Transport and Highways claimed 23%, and Housing & Poverty Alleviation took 20%. The Department of Telecommunication led the list of spenders, utilising 34% of the budget allocation.
Spending during the first quarter of FY26 is over 50% higher than the amount spent during the corresponding period of the previous fiscal year. This increase is partly due to a 15% growth in the June quarter and the central government's increased capital spending, which rose 52% in the June quarter to ₹2.75 lakh crore.
The combined total capex target set by these CPSEs and the four major government bodies for the entire 2025-26 fiscal year is ₹7.85 lakh crore. This target is approximately 3% lower than the actual combined capital spending of ₹8.07 lakh crore in 2024-25, indicating a slight moderation in planned investment levels.
Despite the slight moderation, the Union Budget provided over ₹11.21 lakh crore for FY26 capital expenditure, of which over ₹2.75 lakh crore was spent during the first quarter. CPSEs are encouraged to take up capital expenditure to achieve profitable growth in their business.
Several key performance indicators have been included in the annual MOU framework for the CPSEs, including capital expenditure, return on net-worth or return on capital employed, export and import as a percentage of revenue, EBIDTA as a percentage of revenue, and asset turnover ratio.
The article is published on August 7, 2025, with the target for capital expenditure by CPSEs this year set at over ₹7.84 lakh crore. The publication date of the article is August 7, 2025.
- The robust increase in capital expenditure by CPSEs and key government agencies in India has been analyzed, with a total of approximately ₹2.21 lakh crore spent in the first four months of the current fiscal year, marking a 2.5% year-on-year increase.
- The Railway Board, National Highways Authority of India (NHAI), ONGC, Indian Oil Corporation, NTPC, PowerGrid Corporation, BPCL, and Coal India are among the significant business entities that have contributed to this substantial spending by CPSEs.
- The Union Budget has allocated over ₹11.21 lakh crore for FY26 capital expenditure, with over ₹2.75 lakh crore spent during the first quarter alone.
- To foster profitable growth in their business, CPSEs are encouraged to continue taking up capital expenditure, as part of a strategy outlined in the annual MOU framework, which includes several key performance indicators.
- The capital expenditure target set by these CPSEs and major government bodies for the entire 2025-26 fiscal year is approximately 3% lower than the actual combined capital spending of ₹8.07 lakh crore in 2024-25.
- Live updates and analysis on the performance of the business and finance industry, including the progress towards the capital expenditure target for CPSEs, will continue to be tracked and reported on, with the target for this year set at over ₹7.84 lakh crore.
