PSUs likely to meet capex target of Rs 3.5 lakh crore in FY26: DIPAM Secretary

Capex by PSUs contributes significantly to infrastructure development and employment generation across sectors such as power, steel, oil and gas, railways and defence

Central public sector undertakings (PSUs) are on track to meet their capital expenditure (capex) target of Rs 3.5 lakh crore in the current financial year, according to the department of investment and public asset management (DIPAM).

“PSUs likely to meet their capex target of Rs 3.5 lakh crore in FY26. They also met their capex target in FY25 and will do so in FY26 as well,” DIPAM secretary Arunish Chawla said during a media briefing on April 9.

Capex by PSUs contributes significantly to infrastructure development and employment generation across sectors such as power, steel, oil and gas, railways and defence.

Driving investment cycle

In FY25, CPSEs successfully achieved their targeted capex, aligning with the Centre’s policy thrust on public investment as a catalyst for growth and maintaining momentum in asset creation.

Analysts believe consistent PSU spending helps provide stability to the investment cycle, especially in times of global uncertainties. CPSEs have been critical to sustaining the investment push in the last few years, and meeting capex targets gives confidence to the broader economy.

Capital expenditure (capex) refers to funds used by companies to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

While, the capital expenditure target for the current financial year was reduced to Rs 10.18 lakh crore from Rs 11.11 lakh crore earlier, the Budget for 2025-26 pegged it at Rs 11.21 lakh crore, almost flat on-year versus the initial aim.