State-run oil companies’ capex to go up by 6.5% in FY22

Capital spending at Oil and Natural Gas Corp is targeted to drop 8% in 2021-22 from the current year while it’s set to expand 9% at Indian Oil NSE 1.47 % and 26% at Hindustan Petroleum, according to the budget document.

State-run oil companies have planned a combined capex of Rs 105,000 crore in FY22, up 6.5% from the current year’s target. In the first three quarters of the current year, state oil companies have together spent Rs 58,500 crore, or 60% of their combined annual target, the pace being slow mainly due to the disruptions caused by the pandemic.