India’s Energy sector to get a major push with ONGC, IOC, other PSUs deciding to invest INR 1.2 trillion for oil and gas exploration, refineries, petrochemicals and laying of pipelines.
Feb 16, 2024
India’s energy sector is in for a major boost as some of the largest Public Sector Undertakings (PSUs), including the Oil and Natural Gas Corporation (ONGC) and the Indian Oil Corporation (IOC), have decided to invest about INR 1.2 trillion in the coming fiscal, to meet the rising energy demands of the world’s fastest growing nation.
The proposed investment by the state-owned oil firms has shown a 5 percent increase to INR 1.12 trillion, which was spent in the current fiscal year that ends on March 31.
ONGC, India’s largest crude oil and natural gas company, will spend INR 30,800 crore in the next financial year starting from April, to find new reserves of oil and gas and bring to production discoveries it has already made.
The amount has registered a slight increase from INR 30,500 crore, which the national agency spent in the FY24 (April 2023 to March 2024) for discovering both the east and west coasts of the country.
ONGC Videsh Ltd (OVL), the overseas arm of ONGC, will invest 68 per cent more at Rs 5,580 crore in the next fiscal for the oil and gas operations on foreign shores, as compared to 2023-24.
Hindustan Petroleum Corp Ltd (HPCL), a Maharatna Central Public Sector Enterprise (CPSE) and a subsidiary of ONGC, has come up with an investment outlay of INR 12,500 crore, registering a slight increase from Rs 12,000 crore spent in the last fiscal.
IOC, the top oil refiner in the Indian market, has come up with an investment outlay of INR 30,910 crore. A major chunk of this amount will go into expansion and upgrading of IOC’s seven refineries that produce fuel.
The amount further includes investment of INR 3,299 crore in the petrochemical business and INR 236.48 crore capex for the small oil and gas exploration. IOC will spend INR 31,254 crore less in the current 2023-24 fiscal, as compared to the last fiscal ending on March 31 this year.
The second-largest oil producer of the country, Oil India Ltd, has increased its investment marginally to Rs 6,880 for FY25, compared to Rs 5,648 crore in 2023-24.
Also Read: Goodluck India Raises INR 200 Crore through QIP
Leading oil and gas company Bharat Petroleum Corp Ltd, will invest INR 13,000 crore in the energy sector, registering a 30 per cent rise in its capital spending of last fiscal. Around two-thirds of this capex will be spent in the core refining business of BPCL.
Since most of the pipeline grid expansion projects of GAIL India Ltd are nearing completion, the agency, which is considered as one of the largest natural gas companies in the country and one of the seven Maharatna Public Sector Undertakings (PSUs) under the Government of India, will invest INR 8,000 crore in 2024-25, showing a decrease from INR 9,750 crore it spent in the last fiscal.
