(MENAFN- KNN India) New Delhi, May 7 (KNN) India's Central Public Sector Enterprises (CPSEs) have emerged as significant drivers of economic activities, with their procurement from Micro, Small, and Medium Enterprises (MSMEs) reaching 36.34 per cent in the Financial Year 2024, surpassing the mandated target of 25 per cent.
According to official reports, the combined procurement through the Government e-Marketplace (GeM) by 54 CPSEs and five departmental arms of the government, including the Railways Board and the National Highways Authority of India, stood at a substantial Rs 2.62 lakh crore as of March 31, 2024, reported ET.
This figure represents a remarkable increase from the Rs 1.06 lakh crore recorded in the same period last year, enabling the CPSEs to achieve an all-time high combined capital expenditure (capex) of 108.54 per cent, amounting to Rs 8.05 lakh crore.
"All the CPSEs have performed commendably in terms of procurement from MSMEs, which has had a multiplier effect," stated a senior government official, further noting that the spending under the Corporate Social Responsibility stood at Rs 2,467 crore in FY 2024.
The gross merchandise value of the state-run Government e-Marketplace (GeM) has already touched an impressive Rs 4 lakh crore by the end of March 31, with the central government actively encouraging ministries to procure goods and services through the portal.
Officials revealed that a significant push was made in March, with CPSEs spending Rs 1.22 lakh crore during the month alone, enabling them to exceed the annual target by Rs 63,354 crore. The momentum is expected to continue in the upcoming Financial Year 2025.
The growth was spearheaded by two major boards: the National Highways Authority of India (NHAI), which invested Rs 2.07 lakh crore, surpassing its annual target of Rs 1.67 lakh crore by 19 per cent compared to the previous year, and the Railway Board, which invested Rs 2.49 lakh crore against an annual target of Rs 2.44 lakh crore, representing a 32 per cent increase from the last fiscal year.
All petroleum CPSEs achieved or exceeded their targets, primarily driven by capacity expansion and a focus on green transition initiatives. Notable achievements include Indian Oil Corporation's capital expenditure of Rs 42,581 crore, or 136 per cent of its FY24 target of Rs 31,254 crore, and ONGC's capex of Rs 34,965 crore against the annual target of Rs 30,500 crore.
In the power sector, NTPC invested Rs 26,088 crore in FY24, achieving 116 per cent of its annual target, while Coal India's capex stood at Rs 19,840, surpassing its annual target of Rs 16,600 by 119 per cent. All petroleum CPSEs achieved or exceeded their target mainly on account of capacity expansion and focus on green transition.
(KNN Bureau)
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