Lok Sabha Question No. 620 (UNSTARRED), answered on 2016-11-18
Subject: Capital Expenditure
Ministry: FINANCE
Asked by: M. K. RAGHAVAN

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA UNSTARRED QUESTION NO.620 TO BE ANSWERED ON FRIDAY, 18 th  NOVEMBER, 2016 (KARTIKA 27, 1938 (SAKA)

## CAPITAL EXPENDITURE

## 620.    SHRI M.K. RAGHAVAN:

## Will the Minister of FINANCE ( वित् e ंत्र ) be pleased to state:

- (a) the details and present status of Capital Expenditure (CAPEX) in both public and private sector along with areas presently covered for investment;
- (b) whether  the  Government  has  elicited  opinion/suggestions  from  the  industry stakeholders on the policy reform initiated, if so, the details thereof; and
- (c) the  steps  taken  by  the  Government  to  boost  investment  particularly  Capital Investment in the industrial sector?

## ANSWER

## MINISTER OF STATE IN THE (SHRI ARJUN RAM MEGHWAL) MINISTRY OF FINANCE

(a) : An amount of ` 2,47,024 crore has been assumed as Capital Expenditure by Government in BE 2016-17. ` 3,98,139 crore has been estimated as Capital  Expenditure  by  the  Public  Sector  Enterprises  in  BE  2016-17.  Of ` 2,47,024 crore  assumed  in  BE  2016-17,  an  amount  of ` 1,34,925  crore  has  been  incurred  as Capital Expenditure by the Government upto September, 2016. Similarly an amount of ` 1,03,237 crore has been incurred as CAPEX by the Public Sector Enterprises. The information  on  investment  by  private  sector  is  not  centrally  maintained  in  this Ministry.

(b)&(c) : Government  has  put  in  place  an  investor-friendly  policy,  to  promote FDI with a view to complement and supplement domestic capital formation. Except for a small negative list, most sectors are open for FDI. The policy on FDI is reviewed on an ongoing basis and changes are made in the policy in a calibrated manner after having intensive consultations with stakeholders including concerned Ministries/Departments,  State  Governments,  apex  industry  chambers,  Associations and other organizations taking into consideration their views/comments.  Government has also taken various other steps to boost investment particularly Capital Investment in the industrial sector through credit guarantee scheme, soft loans,  etc. Reserve Bank

- of  India  has  also  reduced  the  policy  rates  which  go  towards  easy  liquidity  in  the market.

* * *

## D R A F T  R E P L Y

## LOK SABHA UNSTARRED QUESTION NO.620

## To be answered on 18.11.2016

## Capital Expenditure

| 620. SHRI M.K. RAGHAVAN: Will the Minister of FINANCE be please to state:                                                                                                                        | ANSWER                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) the details and present status of Capital Expenditure (CAPEX) in both public and private sector along with areas presently covered for investment;                                           | (a) An amount of ` 2,47,024 crore has been assumed as Capital Expenditure by Government in BE 2016-17. ` 3,98,139 crore has been estimated as Capital expenditure by the Public Sector Enterprises in BE 2016-17. Of ` 2,47,024 crore assumed in BE 2016-17, an amount of ` 1,34,925 crore has been incurred as Capital Expenditure by the Government upto September, 2016. Similarly an amount of ` 1,03,237 crore has been incurred as CAPEX by the |
| (b) whether the Government has elicited opinion/suggestions from the industry stakeholders on the policy reform initiated, if so, the details thereof; and (c) the steps taken by the Government | Public Sector Enterprises. The information on investment by private sector is not centrally maintained in this Ministry. (b) &(c):Government has put in place an investor-friendly policy, to promote FDI with a view to complement and supplement domestic capital formation.                                                                                                                                                                        |

| organizations taking into consideration their views/comments. Government has also taken various other steps to boost investment particularly Capital Investment in the industrial sector though credit guarantee scheme, soft loans, etc. Reserve Bank of India has also reduced the policy rates which go towards easy liquidity in the market.   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

JS(Budget)

## Ministry of Finance (Budget Division)

…..

Subject: Lok Sabha Unstarred Question No.620 put down by Shri M.K. Raghavan for answer on 18.11.2016 regarding Capital Expenditure.

The above referred question seeks the following information:

- (a) the details and present status of Capital Expenditure (CAPEX) in both public and  private sector  along  with  areas  presently  covered  for investment;
- (b) whether  the  Government  has  elicited  opinion/suggestions  from  the industry  stakeholders  on  the  policy  reform  initiated,  if  so,  the  details thereof; and
- (c) the  steps  taken  by  the  Government  to  boost  investment  particularly Capital Investment in the industrial sector?
2. Based on the information available with this Ministry and the information  provided  by  the  Department  of  Public  Enterprises  and  Department  of Industrial  Policy  &  Promotion,  a  draft  reply  to  the  above  mentioned  question  is submitted for approval please.

( T. Uthaya Kumar ) Additional Budget Officer