Undertaking weekly capex review of PSUs, says DIPAM secy

New Delhi, Aug 1 (PTI) Department of Investment and Public Asset Management (DIPAM) is undertaking weekly review of capital expenditure of all public sector undertakings and is working on strategies that can insulate them from geopolitical risks, Secretary Arunish Chawla said on Friday.

The secretary in the Department or Investment and Public Asset Management (DIPAM) said public sector enterprises now account for almost 15 per cent of the total market capitalisation and the government is confident they will continue with their capital expenditure.

"We are doing capital review of all public sector undertakings on a weekly basis and we are working on strategies that can insulate our economy from geopolitical risks," Chawla told reporters.

US President Donald Trump has announced 25 per cent tariffs on India, plus a "penalty" for its trade with Russia. The tariffs will come into effect from August 7, however, there is no clarity on penal provision.

The tariffs have rattled equity markets with Sensex and Nifty declining sharply for the second straight session on Friday, tracking deep losses in pharma, metal, and IT stocks amid trade-related concerns and widespread selling pressure in global markets.

The announcement of duty and penalty is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK, and the European Union.

India is the first country to face a penalty for Russian imports. Previously, Trump slapped high tariffs on China but refrained from levying any penalty despite Beijing being Russia's largest oil importer. PTI JD TRB