Many are utilising the profits generated in the current year to add capacity
GN Bureau | December 19, 2016
State-owned enterprises aren’t holding back on their capital expenditure (capex spends) even though there has been negative cash flows last year. Many are utilising the profits generated in the current year to add capacity and bridging the deficit with borrowings, reported Financial Express.
Steel major SAIL is on track to complete its Rs 4,000-crore capex programme for the year, having spent Rs 2,374 crore or well over 50 percent of the outlay in the first six months. The management has planned for a capacity expansion of 50 percent at a cost of nearly Rs 40,000 crore.
NTPC has invested close to Rs 13,400 crore between April and September, nearly half the outlay envisaged for the year; the lack of free cash flows in each of the last three years hasn’t stopped the power producer from enhancing capacity.
Kulamani Biswal, finance director, has said that the company had issued Rs 1,470 crore worth of bonds at around 7.5 percent. “We have also mopped up Rs 2,000 crore via Green Masala Bonds at 7.4 percent to fund solar and wind power projects,” Biswal was quoted as saying.
Smaller PSUs like Container Corporation of India seem to be on course to meet their capex targets for FY17. CMD V Kalyana Rama said: “We have completed about 40% of the work in the first six months.”
Oil marketing company BPCL has spent just Rs 3,800 crore in H1FY17. While that is less than half the targeted Rs 13,000 crore, the management is confident spends will pick up soon.
On Gandhi Jayanti this year, the Khadi India outlet in Connaught Place in the capital once again set a new record of khadi sales in a single day. In a single day, the Khadi India showroom at Connaught Place marked sale of Rs. 1.34 crore and broke its own previous record of Rs. 1.01 crore se
In Mumbai, the ninth most populous and congested city on the planet, high rentals compel citizens to spend five hours on an average travelling to work every day. Mumbai’s Metro Rail System extending towards Mumbai Metropolitan Region (MMR) will not only provide East-West connectivity
Tourism is a huge part of global culture nowadays and is also one of the biggest sources of revenue across the world. According to the World Travel and Tourism Council (WTTC), in 2019, the tourism industry contributed $8.9 trillion or 10.3% to the global GDP. The industry witnessed a massive lull in 2020 d
The Life and Times of George Fernandes By Rahul Ramagundam Penguin/New India Foundation, 624 pages, Rs 799 Amer
After years of intense preparation, India is about to take the next step in information and communication technology. Prime Minister Narendra Modi will launch 5G services in India on October 1 and also inaugurate the 6th Edition of India Mobile Congress 2022 to be held till October 4, at Pragati Maidan, Ne
There is this popular saying that epics are never told, but always retold. Ramayana is one such epic and needs no introduction. Its plot is grounded in sacrifice and the end brings out hope that the good always wins. But how is a centuries-old tale of the prince of Ayodhya still relevant for today’s