Indian companies to spend $45-50 billion in capex over 1-2 years, RIL to lead: Moody's
Moody's Ratings on Tuesday said rated Indian companies will spend USD 45-50 billion annually over the next 1-2 years towards capex as companies boost capacity, with the country's most valued firm Reliance Industries alone accounting for 30 per cent of the spendings. Investments to increase vertical integration and achieve net zero targets will also keep spending high, Moody's Ratings said in a report on corporates in India and Indonesia.
«Rated Indian companies' capex will remain elevated at around USD 45-50 billion annually over the next one to two years. With an annual capex budget of around USD 15 billion spread across its different business segments, Reliance Industries alone will account for around 30 per cent of the portfolio capex,» Moody's Ratings said.
The oil and gas sector and Reliance Industries will collectively account for over 60 per cent of the rated Indian portfolio's spending over the next couple of years.
Moody's said the seven rated oil and gas companies in India will also account for around 30 per cent of rated Indian companies' capex.
These companies will spend around USD 15 billion annually to expand existing capacity and make green energy investments to reduce carbon transition risk.
For instance, Oil and Natural Gas Corporation Ltd. (Baa3 stable) and Indian Oil will spend USD 6 billion and USD 4 billion, respectively, in each of the next two years on reserves addition, downstream integration and energy transition, Moody's added.
It also said strong earnings will continue to keep the
