Indian Oil PSUs To Invest Rs 1.2 Tn In FY25 For Energy Infrastructure Expansion
India's major oil and gas Public Sector Undertakings (PSUs), including ONGC, IOC, and others, are gearing up for substantial investments totaling around Rs 1.2 trillion in the upcoming fiscal year starting 1 April.
The funds will be allocated for diverse projects spanning oil and gas exploration, refinery expansions, petrochemicals, and pipeline infrastructure, all aimed at meeting the escalating energy demands of the world's fastest-growing energy-consuming nation.
According to documents from Budget 2024-25, the proposed investment represents a 5 per cent increase from the Rs 1.12 trillion spent by state-owned oil firms in the current fiscal year ending on 31 March.
Oil and Natural Gas Corp (ONGC), the country's premier oil producer, plans to allocate Rs 30,800 crore for capital spending in the next financial year. This amount, dedicated to discovering new reserves and bringing existing discoveries into production, is slightly higher than the Rs 30,500 crore spent in the fiscal year 2023-24. ONGC's operations extend to both the east and west coasts of India.
ONGC's overseas subsidiary, ONGC Videsh (OVL), is set to amplify its investments by 68 per cent, reaching Rs 5,580 crore in 2024-25, primarily focused on oil and gas operations abroad.
Indian Oil Corp (IOC), the nation's leading oil refiner, is slated to be the highest spender, with an investment outlay of Rs 30,910 crore. This substantial sum will primarily go towards the expansion and upgrade of its seven refineries dedicated to fuel production.
Additionally, IOC will allocate Rs 3,299 crore for its petrochemical business and Rs 236.48 crore for its small oil and gas exploration portfolio. While IOC's planned investment is slightly less than the Rs 31,254 crore spent in the current fiscal, it underscores the company's commitment to enhancing its infrastructure.
Bharat Petroleum Corp (BPCL) is proposing a 30 per cent increase in capital spending, reaching Rs 13,000 crore, with a significant portion directed towards its core refining business.
GAIL India, a gas utility, is anticipating a decline in planned investment to over Rs 8,000 crore in 2024-25, primarily due to the completion of most pipeline grid expansion projects initiated in the previous fiscal, where the investment stood at Rs 9,750 crore.
Hindustan Petroleum Corp (HPCL), a subsidiary of ONGC, plans to invest Rs 12,500 crore in FY25, a marginal increase from Rs 12,000 crore in the preceding year.
Meanwhile, Oil India, the country's second-largest oil producer, is set to invest Rs 6,880 crore in the next fiscal year, compared to Rs 5,648 crore in the current fiscal, further emphasising the industry's commitment to bolstering India's energy infrastructure.
