Oil companies have allocated a capital expenditure of ₹89,000 crore during the initial nine months of the current fiscal year to enhance new production and distribution facilities. The spending represents approximately 84% of their combined capital expenditure target of ₹1,06,000 crore for the fiscal year, as per data from the oil ministry. Indian Oil Corporation Limited (IOCL) has emerged as the leading spender among the oil companies, having utilised ₹27,000 crore, accomplishing nearly 90% of its annual target.
Oil and Natural Gas Corporation (ONGC), with an expenditure of ₹24,500 crore, has utilised around 80% of its annual target. Meanwhile, ONGC Videsh, the overseas arm of ONGC, has expended ₹2,400 crore, equivalent to three-fourths of its annual budget. Hindustan Petroleum Corporation Limited (HPCL), having spent ₹9,500 crore, is on the verge of exhausting its ₹10,000 crore annual budget, primarily due to significant capital investment in the construction of a greenfield refinery in Barmer, Rajasthan.
Bharat Petroleum Corporation Limited (BPCL), having utilized 80% of its ₹10,000 crore annual budget, and GAIL, with an expenditure of ₹6,400 crore (80% of its annual target), also reflect substantial capital commitments. Oil India, having expended 80% of its ₹5,000 crore annual budget, is following a similar trend.
As reported by The Economic Times, oil companies collectively allocate over ₹1,00,000 crore annually for capital expenditures. In the current fiscal year, a total of ₹1,06,000 crore has been earmarked, with approximately 45% designated for exploration and production activities. Around ₹7,000 crore is dedicated to expanding petrochemical facilities, while the remaining funds are directed towards enhancing operations in the refining and marketing sectors.
