ONGC, IOCL, and other oil PSUs are gearing up to invest approximately ₹1.2 lakh crore in the upcoming fiscal year starting April 1. The investment will be directed towards oil and gas exploration, refinery enhancements, petrochemical projects, and the expansion of pipeline infrastructure to cater to the surging energy demands of the nation, which is currently the world’s fastest-growing energy consumer. The proposed investment for the fiscal year 2024-25 marks a 5% increase from the ₹1.12 lakh crore spent by the companies in the current fiscal year ending on March 31, as outlined in the budget 2024-25 documents.
In the forthcoming financial year, Oil and Natural Gas Corp (ONGC) plans to allocate ₹30,800 crore for capital expenditures. ONGC’s endeavours span both the east and west coasts of the country. ONGC’s overseas subsidiary, ONGC Videsh Ltd (OVL), is set to boost its investment by 68% to ₹5,580 crore in 2024-25 for its international oil and gas operations compared to the previous fiscal year.
Indian Oil Corporation Limited (IOCL) has earmarked ₹30,910 crore for investment, with a significant portion dedicated to expanding and modernising its seven refineries. The allocation also includes funds for petrochemical ventures and a small portfolio dedicated to oil and gas exploration, amounting to ₹3,299 crore and ₹236.48 crore, respectively.
As reported by ETEnergyworld.com, despite a slight reduction from the current fiscal year’s spending of ₹31,254 crore, IOCL’s proposed investment remains substantial. Bharat Petroleum Corp Ltd (BPCL) is aiming for a 30% increase in capital expenditure, allocating ₹13,000 crore, with the majority targeted at refining operations. Similarly, Hindustan Petroleum Corp Ltd (HPCL), a subsidiary of ONGC, plans to invest ₹12,500 crore in FY25, slightly higher than the ₹12,000 crore invested in the previous year. Oil India Ltd also anticipates an increased investment of ₹6,880 crore for the upcoming year compared to ₹5,648 crore in the current fiscal.
