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

Modi inaugurates, lays foundation stone of Pune Metro projects

Prime minister Narendra Modi inaugurated and laid the foundation stone for Pune Metro projects worth around ₹21,800 crore on Tuesday through video conferencing. Addressing the gathering on the occasion, the PM extended warm Diwali greetings to the people of Pune and Maharashtra and remarked that f

Wired for good: Building sustainable cities with AI

The First Industrial Revolution in the 18th-19th centuries ushered in a paradigm shift in how cities were imagined. Fueled by railways, factories and grids, and obsessed with speed and scale, it was an ode to efficiency, which spurred unprecedented economic growth. Now, as the Fourth Industrial Revolutio

How social media is reshaping elections

Since Brazil’s return to direct presidential elections in 1985, no candidate who finished second in the first round of polling had ever won the presidency. Luiz Inácio Lula da Silva, now 81, has just done it. What explains the comeback, and what changed in Brazilian politics to make it possi

Cabinet approves Dearness Allowance, Dearness Relief

The union cabinet chaired by prime minister Narendra Modi on Wednesday approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2026 representing an increase of 3% over the existing rates of 6

Cyclone Arnab strikes Andhra as warming oceans amplify storm risks

Cyclone Arnab made landfall along the Andhra Pradesh and Yanam coasts in the early hours of Wednesday as a very severe cyclonic storm, with maximum sustained wind speeds of 125–135 kmph and gusts reaching 150 kmph. Its rapid intensification has raised concerns about how warmer oceans, global warmin

Counting matters but which ones?

The first instinct of public policy is to count. Its harder task is to count what counts. We have become remarkably good at measuring the reach of the welfare state vis-à-vis beneficiaries covered, rupees transferred, houses built, connections installed and services delivered. But some of the most

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter