State-run oil companies surge ahead with Rs 89,000 crore capital spending
State-run oil companies made a capital spending of Rs 89,000 crore in the first nine months of the current fiscal year as they enhanced new production and distribution facilities.
The spending is about 84% of their combined capex target of Rs 106,000 crore for the current fiscal year, according to the oil ministry data. Indian Oil Corp, the nation’s top refiner and fossil fuel retailer, has been the biggest spender among state oil companies this year.
With an expenditure of Rs 27,000 crore, it has achieved nearly 90% of its target for the year. The company has been spending on enhancing its refining capacity as well as adding marketing infrastructure and petrochemical facilities.
Oil and Natural Gas Corp, the largest producer of oil and gas in the country, has spent Rs 24,500 crore, or about 80% of its annual target.
The company spends about two-thirds of its annual capex on maintaining output from producing fields and the balance on exploration of new fields and their development. ONGC’s overseas arm ONGC Videsh has spent Rs 2,400 crore, three-fourths of the annual budget.
Hindustan Petroleum Corp (HPCL) has spent Rs 9,500 crore, nearly exhausting its annual budget of Rs 10,00 crore as the greenfield refinery being built in Barmer, Rajasthan absorbs a lot of capital.
Bharat Petroleum Corp (BPCL) has used up 80% of its annual budget of Rs 10,000 crore.
GAIL, the nation’s largest natural gas transporter and marketer, has spent Rs 6,400 crore, or 80% of its annual target. Oil India too has used up 80% of its annual budget of Rs 5,000 crore.
State-run oil companies together spend more than Rs 100,000 crore in capex annually.
