Page 11 - Latest Updates on Capital Expenditure
Vodafone Idea needs fresh round of equity infusion by 2021, say lenders
All telecom firms to remain under stress despite tariff hike
 "Vodafone Idea needs fresh round of equity infusion by 2021, say lenders")
FM Sitharaman asks departments to prepare capex plans for next 4 quarters
Most infra ministries have reached 50% of FY20 capex target
 "FM Sitharaman asks departments to prepare capex plans for next 4 quarters")
Tax windfall: India Inc to increase capex spending, retire high-cost loans
Among the profit-making companies which would gain the most in absolute terms are RIL, Oil and Natural Gas Corporation, and Indian Oil Corporation
 "Tax windfall: India Inc to increase capex spending, retire high-cost loans")
Hero MotoCorp might see reduction in earlier-projected capex of Rs 1,500 cr
There is also the anticipation of better participation from the rural markets in third and fourth quarters owing to good monsoon
 "Hero MotoCorp might see reduction in earlier-projected capex of Rs 1,500 cr")
Should the govt borrow to fund capex?
From lenders or purely fund raising point of view, money could more safely be deployed with the government entities like the NHAI and the IRFC than with private companies
 "Should the govt borrow to fund capex?")
Finance ministry asks departments, PSUs to expedite capital expenditure
These capex reviews come just a day after Finance Minister Nirmala Sitharaman met representatives of the infrastructure sector
 "Finance ministry asks departments, PSUs to expedite capital expenditure")
Tight-fisted Budget leads to capex squeeze, and it's not surprising anymore
The share of capital expenditure has shown a declining trend over the last twenty years
 "Tight-fisted Budget leads to capex squeeze, and it's not surprising anymore")
Tight-fisted Budget leads to capex squeeze, and it's not surprising anymore
The share of capital expenditure has shown a declining trend over the last twenty years
 "Tight-fisted Budget leads to capex squeeze, and it's not surprising anymore")
Election impact: New projects down 85% YoY in June on Capex slowdown
CMIE data puts value of new projects at Rs 43,000 cr, compared with Rs 3.45 trillion a year ago; completed projects down 60% to Rs 53,000 cr from Rs 1.33 trillion in June 2018
 "Election impact: New projects down 85% YoY in June on Capex slowdown")
Falling corporate capital expenditure, slowing rural sales worry CEOs
Another worrying sign for India Inc is the lack of new jobs in the formal sector
 "Falling corporate capital expenditure, slowing rural sales worry CEOs")
Tax rates can be progressively brought down, writes SBI chief Rajnish Kumar
Fresh capital expenditure is still some time away; as investment will happen when demand picks up, reduction of rates will free up income for discretionary consumption
 "Tax rates can be progressively brought down, writes SBI chief Rajnish Kumar")
Capital expenditure by states set to cross Rs 5 trillion in 2018-19
Over the period, states have ramped up spending on the social sector, which has risen from 6.7 per cent of GDP in 2014-15 to 8 per cent in 2018-19
 "Capital expenditure by states set to cross Rs 5 trillion in 2018-19")
Retail credit now bigger market for banks and NBFCs than loans to industry
Total retail loans (outstanding) reached Rs 31 trillion at the end of March 2018, while bank credit to industry stood at Rs 27 trillion
 "Retail credit now bigger market for banks and NBFCs than loans to industry")
After two early Budgets, capital expenditure rises 48% in April
Lower carryovers led to a reduced revenue expenditure outlay for the central government
 "After two early Budgets, capital expenditure rises 48% in April")
Govt may have to cut capex by Rs 70,000 cr: SBI Research
However, it notes, there are alternatives on both targets and fiscal consolidation
 "Govt may have to cut capex by Rs 70,000 cr: SBI Research")
Focus stimulus package on raising capex, says Rangarajan
He also made a case for recapitalisation of PSBs, so that they could provide more funding to the private sector
 "Focus stimulus package on raising capex, says Rangarajan")
Govt capex to rise 25% to Rs 3.9 lakh crore by FY20
Defence accounts for about 30% of the govt's capital outlay
 "Govt capex to rise 25% to Rs 3.9 lakh crore by FY20")
