Budget 2016: Govt ups spend on power PSUs to Rs.68,256 cr

India will invest Rs.68,256.70 crore on eight public sector power companies in 2016-17 as against Rs.58,642.89 crore a year ago, according to the Union Budget 2016 document. The biggest allocation for investment has been done for power generator NTPC, followed by transmission company Power Grid Corporation of India. NTPC´s capex for 2016-17 is pegged at Rs.30,000 crore, an increase from Rs.25,000 crore a year ago. This comes at a time when most private sector generators are shying to take up new projects in conventional power as they struggle with stretched balance sheets and loss making power distribution companies are not signing power purchase agreements. PGCIL will spend Rs.22,500 crore in 2016-17 on capital expenditure, same as last year. The government will invest Rs.5,000 crore via PFC for whom no investment was set aside last year.