ONGC, IOC, and other oil PSUs intend to invest nearly Rs 1.2 lakh crore in the upcoming fiscal year towards oil and gas exploration, refineries, petrochemicals, and setting down pipelines to cater to the rapidly growing energy needs of India.
According to the Budget 2024-25 documents, the investment for FY25 stood 5 per cent higher than the amount of Rs 1.12 lakh crore, spent by the firms in the ongoing fiscal year, reported PTI.
Oil and Natural Gas Corp (ONGC) has set a planned capex of Rs 30,800 crore in the 2024-25 fiscal year. This expenditure, set for looking for new oil and gas reserves and bringing to production discoveries already made, stands higher against the capex of Rs 30,500 crore allotted for FY24. The state-owned oil firm is looking into developing discoveries in both the coasts of the country, the report noted.
Further, the firm’s overseas business, ONGC Videsh Ltd (OVL) is set to invest Rs 5,580 crore in the next fiscal towards oil and gas operations abroad, 68 per cent higher than FY24.
At the same time, an investment outlay of Rs 30,910 crore has been decided for the Indian Oil Corporation (IOC), with the majority of it set towards expanding and upgrading the seven refineries that produce fuel. This amount stands lower than the Rs 31,254 crore set for spending in FY24. The allotment includes Rs 3,299 crore for the petrochemical business and Rs 236.48 crore for the small oil and gas exploration segment.
Bharat Petroleum Corporation Ltd (BPCL) suggested a 30 per cent increase in capex at Rs 13,000 crore, with the majority meant for the core refining business. GAIL India Ltd also set a planned investment of Rs 8,000 crore for FY25, down from Rs 9,750 crore set for the current fiscal year.
Hindustan Petroleum Corp Ltd was allotted Rs 12,500 crore for FY25, against Rs 12,000 crore in the earlier year. Notably, FM Sitharaman in the Interim Budget 2024, put off capital support to oil marketing companies, namely the IOC, BPCL, and HPCL, to the next fiscal year. During the Budget presentation last year, the minister announced an equity infusion of Rs 30,000 crore in the three firms to help provide support to their energy transition plans. Further, she also recommended Rs 5,000 crore for purchasing crude oil to fill the strategic underground storages in Karnataka and Andhra Pradesh.
According to the Budget documents, Rs 15,000 crore has been set aside for the upcoming fiscal year towards equity infusion, with no funds mentioned for filling the strategic reserves.
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