State-run oil and gas firms are set to invest Rs 1.62 trillion in FY21 – including capital expenditure (capex) and operational expenditure (opex) — which is expected to generate employment of 240 million man-days.
As many as 8,363 oil and gas projects are already work-in-progress, which will incur capital expenditure of Rs 1.2 lakh crore in FY21. As on August 15, around Rs 26,576 crore has already been spent on these projects.
These expenditure figures, expected to give a fillip to the employment scenario, were lined up by the companies in a review meeting by Petroleum Minister Dharmendra Pradhan recently.
Divestment-bound national oil marketer Bharat Petroleum Corporation has resumed work on as many as 2,118 projects involving a capital expenditure (capex) of around Rs 50,300 crore over three years. Of the total estimated capital investment, Rs 9,597 crore is targeted for the current fiscal, of which it has already spent Rs 1,650 crore.
The company had last month said it would cut down on its Rs 12,500 crore capex plan announced earlier this year due to the lockdowns and would spend only Rs 8,000 crore. The new announcement increases the capex for the current fiscal by almost Rs 1,600 crore.
All these projects, implemented by Central Public Sector Enterprises oil and gas firms and their subsidiaries, include refineries, bio-refineries, exploration and production activities, marketing infrastructure projects, pipelines, city gas distribution projects, drilling and survey activities. “The amount spent will create a virtuous cycle of investments and play a crucial rule in reviving the economy. It will also provide employment opportunities to people,” said the petroleum ministry.