TLI Staff
New Delhi: Central ministries and CPSEs under their control have been asked to front-load capital expenditure and ensure clearance of MSME’s dues at earliest.
In the 6th review meeting on capex and infrastructure roadmap, Finance Minister Nirmala Sitharaman also asked them to push asset monetization.
During the meeting, implementation of budget announcements and measures to expedite capital infrastructure investment were also discussed.
The meeting was attended by Finance Secretary, Secretary (Economic Affairs), Secretary (Public Enterprises), Secretary (Steel). Secretary (Housing & Urban Affairs), Secretary (Petroleum & Natural Gas) and Secretary (Space) as well as CMDs and CEOs of CPSEs of these Ministries/Departments.
“While reviewing the capital expenditure performance of the Ministries and their CPSEs, Finance Minister emphasised that enhanced capex will play a critical role in revitalising the economy post-pandemic and encouraged the Ministries to front-load their capital expenditure,” said an official statement.
The Finance Minister said that the Budget for FY22 provided a capital outlay of Rs 5.54 lakh crore, a sharp increase of 34.5% over the Budget Estimate of 2020-21. However, the efforts from the budgetary side to increase the capital expenditure have to be complemented by the Public Sector Enterprises, Sitharaman added.
The Steel Ministry was asked to front load capex and facilitate private investment by providing support and removing bottlenecks. Ministry of Petroleum and Natural Gas is expected speed up monetization of assets during the current fiscal. The Department of Space has been asked to focus on domestic procurement wherever possible.
The Finance Minister stated that Ministries need to explore Public Private Partnership (PPP) mode for viable projects.
While concluding the meeting, Sitharaman asked the Secretaries of Ministries to push expenditure on large important projects to ensure that the achievement is commensurate with timelines.