Slow spending by heavyweights drags oil PSU capex average to 47% of FY21 target
New Delhi: Slower spending by heavyweights like ONGC NSE -0.91 %, Indian Oil NSE -0.71 % and Bharat Petroleum NSE -0.74 % has dragged the state-run oil companies’ average capital expenditure so far this year to 47% of the 2020-21’s target of Rs 98,500 crore.
Between April and November, state-run oil companies have spent Rs 46,300 crore. The capital spending was hurt in the initial months of the financial year due to the pandemic and the lockdown but has now picked up with companies putting in extra effort to make up for the lost time.
The pace of spending has been relatively better at smaller companies like Oil India NSE -1.12 % and ONGC Videsh, which have spent 55% and 52% of their respective targets. But bigger companies like ONGC and Indian Oil, which together make up 60% of the combined capex target of state oil firms,
