The Reserve Bank of India has said that the Indian companies are going to see a higher capital expenditure (capex) this year. Data published by the bank has said that the capex for this fiscal is going to be much higher than that of last year when it stood at rupees 344,633 crore.

Most of the money is going to be spent in form of investments over the plans that were made last year. This means that the actual investment is going to be close to rupees 267,369 crore as was the planned expenditure of India Inc. last fiscal.

But, it also said that the levels could be very high looking at the improved situation of the economy as of now. The levels could touch rupees 77,000 crore.

The apex bank said that there is a marked acceleration in the formation of capital goods coupled with favorable demand conditions. While some sectors are seeing proper capacity utilization the others are yet to see such a thing happening.

Most of the sectors have seen rebound in earnings especially in the second half of 2009-10.