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Finance Minister Nirmala Sitharaman asks USPs to carry out an initial investment charge | India News

NEW DELHI: Minister of Finance Nirmala Sitharaman on Friday urged state-owned companies in the energy and rail sectors, as well as the two ministries, to ensure that the capital spending plans set out in the Budget are met, while stressing that this will be critical to revitalizing the economy.
The government relies on the large spending stimulus provided in the Budget to reactivate demand and boost economic activity, which has taken a beating due to the second wave of the coronavirus pandemic.
It also came with instructions to liquidate the quotas of micro, small and medium-sized companies (MIPYMES), which may be facing a liquidity crisis due to the blockade in several states.
“In reviewing the capital expenditure performance of the ministries and their CPSEs, the finance minister emphasized that improved capital spending will play a critical role in revitalizing the economy after the pandemic and encouraged ministries to anticipate their capital expenditures. Ministries were also asked to aim to achieve more than their capital spending targets, ”the Finance Ministry said in a statement.
Noting the 34% increase in capex this year, Sitharaman said higher capex should be supplemented with PSU.

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