Government to increase investment number of PSU power companies by 14%

by Psu Connect
Date: 02-02-24

The government in its official budget speech has announced to increase the investment of eight public sector power companies by 14 percent to Rs 67,286.01 crore in the FY25.

Government to increase investment number of PSU power companies by 14%

Representational image

The current revised budget estimate accounts for Rs 59,119.55 crore for FY24 and the annual budget investment for eight major power sectors corresponds to Rs 60,805.22 crore. As per the categorizing summary for the eight PSUs, the highest allocation is witnessed by the Power Grid Corporation, a central public sector enterprise [CPSE] to be around Rs 12,250 crore, compared to the previous estimate to be of Rs 8,800 crore in FY24.

The hydropower-backed SJVN Ltd has been given an upliftment to Rs Rs 12,000 crore for 2024-25, compared to Rs 10,000 crore in the ongoing financial year. While, NHPC Ltd will increase its investment to Rs 11,761.87 crore for the next fiscal year, compared to the revised estimated budget of Rs 9,006.31 crore for the ongoing fiscal year. The initial investment was budgeted at Rs 10,857.22 crore for 2023-24.

Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoY

For NTPC Ltd the investments are increased marginally to Rs 22,700 crore for the next fiscal year compared to the previous revised budget estimates of Rs 22,454 crore. Whereas, the investment figure for Damodar Valley Corporation has been standing at Rs 3,262 crore for FY25, potentially higher than the revised budget estimate of Rs 2,708 crore for FY24.

The budget estimates of North Eastern Electric Power Corporation which is fixed at Rs 1,841.18 crore for 2024-25 is comparatively higher than the previous budget estimate at Rs 1,150.02 crore for the current fiscal year. The company’s budget estimate was Rs 2,018.59 crore for 2023-24. Meanwhile, Tehri Hydro Development Corporation will invest slightly less at Rs 3,440.96 crore in the next fiscal year against revised budget estimates of Rs 4,877.22 crore for 2023-24. The budget estimate for the company was Rs 3,900.41 crore for the current fiscal.

Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail deposits

The total budget estimates for the power ministry have been pegged at Rs 20,502 crore for FY25 as against the revised estimated expenditure of Rs 17,635 crore for this fiscal. The budget expenditure estimates for the ministry were at Rs 20,671.32 crore for the current fiscal year.

Read Also : India assumes the Chair of Asian Disaster Preparedness Centre