India has stepped up investment on oil and gas public sector enterprises, primarily on refiners, even as global energy majors cut capex amid low crude oil prices.
Budgeted capital expenditure for ONGC and GAIL India was lowered for 2016-17.
In the Union Budget 2016, the government has proposed to invest Rs 87214.56 crore in 2016-17 through the 11 public sector companies under the Ministry of Oil and Gas. In the previous year 2015-16, the government had budgeted an investment of Rs 76565.46 crore on these companies, which stood revised at Rs 76874.75 crore.
Bharat Petroleum Corporation capex for FY17 stands at Rs 10,597 crore, up from Rs 7,250 a year ago. HPCL’s FY17 capex was increased to Rs 1,974.26 from Rs 1539.78 crore a year ago. India Oil Corporation’s FY17 capex was the highest among oil marketing companies at Rs 13772.87 crore vs Rs 11502.91 crore a year ago.
While the government increase the investment for ONGC’s subsidiary ONGC Videsh to Rs 14843.00 in FY17 from Rs 8488 crore in FY16, it slashed the capex for the parent.
ONGC’S capex for FY17 was lowered to Rs 29307.20 crore from Rs 31467.45 crore in FY16. Earlier, ONGC’s Chairman D.K. Sarraf had indicated that the company’s capex for the new fiscal year could be lower than the previous fiscal year as engineering and services providers have lowered rates due to slowdown in the industry.
GAIL’s capital expenditure in FY17 will be Rs 1,787.59 crore, lower than Rs 1,888.84 crore spent in the previous year.
Mangalore Refineries and Petrochemicals FY17 capex stands at Rs 2270.75 crore vs Rs 1862.19 crore a year ago.
