Multiple Indian state-owned oil companies, including Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), are set to invest approximately Rs 1.2 lakh crore in the upcoming fiscal year. The investments come as Finance Minister Nirmala Sitharaman postponed capital support to IOC, BPCL, and HPCL until the next fiscal year
Multiple Indian state-owned oil companies, including ONGC and IOC are set to invest approximately Rs 1.2 lakh crore in the upcoming fiscal year.
Multiple Indian state-owned oil companies, including Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), are set to invest approximately Rs 1.2 lakh crore in the upcoming fiscal year. This marks a 5 per cent increase from the current fiscal year’s expenditure. The investments will cover oil and gas exploration, refineries, petrochemicals, and pipeline projects, PTI reported.
ONGC has earmarked Rs 30,800 crore for capital spending, slightly up from this year’s budget, focusing on developing new and existing oil and gas reserves. Its international arm, ONGC Videsh Ltd., plans a 68 per cent increase in its investment abroad.
IOC, the nation’s leading oil refiner, is allocating the largest portion of the investment, with plans to spend Rs 30,910 crore, mainly on expanding and upgrading its refineries. This outlay also includes Rs 3,299 crore in the petrochemical business and another Rs 236.48 crore in the small oil and gas exploration portfolio it has, PTI reported.
Bharat Petroleum Corporation Ltd proposes a 30 per cent increase in capital spending, dedicating a majority to its refining sector. Meanwhile, GAIL India Ltd. is reducing its investment as it nears the completion of major pipeline projects. Hindustan Petroleum Corporation Ltd. (HPCL) and Oil India Ltd. also plan to increase their investments compared to the current year.
The investments come as Finance Minister Nirmala Sitharaman postponed capital support to IOC, BPCL, and HPCL until the next fiscal year, focusing on the companies’ energy transition plans and strategic oil reserve fillings. The reduction in direct equity support and strategic reserve funding reflects a prioritisation of spending to manage the fiscal deficit.
These investments by state-owned enterprises are part of a broader strategy to enhance India’s energy infrastructure and reduce carbon emissions, with the companies setting ambitious goals for achieving net-zero emissions in the coming decades.
