PSU capex plans not impacted by negative cash flow

Many are utilising the profits generated in the current year to add capacity

GN Bureau | December 19, 2016


#SAIL   #capital expenditure   #PSU   #NTPC  

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.

 

Comments

 

Other News

Revamp BMC Engineering Department for better governance, says think tank

Calling for reforms in the Engineering Department of BMC, Mumbai Vikas Samiti, a not-for-profit organisation has said that less than optimum performance of Engineering Function has added to the woes of citizens and deterioration in the quality of life in the metro. In its recently released r

NGO hails Maharashtra move to amend Insecticide Act

Hailing the Maharashtra government for introducing a bill to amend the Insecticide Act, 1968, Pesticide Action Network (PAN) India has called the amendments ‘very  focussed’ and urged the state to expand their scope to address other challenges. The bill, introduced in the a

‘Garba of Gujarat’, now a Unesco Intangible Cultural Heritage

`Garba of Gujarat` has been inscribed in the Representative List of Intangible Cultural Heritage (ICH) of Humanity by UNESCO, under the provisions of the 2003 Convention for the Safeguarding of Intangible Cultural Heritage during the 18th meeting of the Intergovernmental Committee for the Safeguarding of t

Cyber frauds helpline has helped save Rs 930 crore

Since its inception, Citizen Financial Cyber Fraud Reporting and Management System has witnessed more than 12.77 lakh complaints registered (till November 15, 2023), and has saved more than Rs. 930 crore in more than 3.80 lakh complaints. This was stated by minister of state for home affair

COP28 discusses climate resilient development in Himalayas

Impacts and implications of Climate Change Vulnerability in the Himalayan Region and ways of creating ‘Climate Resilient Development in Indian Himalayan Region by making mountain communities green and resilient were discussed the side event hosted at the India pavilion at the UN Climate Conference CO

Air Pollution: What needs to be done to tame the silent killer

Air pollution in Delhi has been in headlines, as every year in recent times. Mumbai too has suffered from air pollution, despite being a coastal city. Apart from many other metros such as Bangalore and Kolkata, tier-I and -II cities and rural areas also have high pollution levels. Every year reports and st

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter