New Delhi, April 21
Oil and gas producer ONGC spent about one-fifth less than its budget capex in 2020-21 fiscal after Covid-related restrictions delayed projects but fuel marketers such as IOC exceeded targeted capital spending, a government report showed.
Oil and Natural Gas Corporation (ONGC) had budgeted Rs 32,502 crore of capital spending in the fiscal from April 2020 to March 2021 but ended up spending only Rs 26,441 crore, according to the report of the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC).
Findings of Oil Ministry’s report
- Oil and National Gas Corpn had budgeted Rs32,502 crore of capital spending in the fiscal from April 2020 to March 2021 but ended up spending only Rs26,441 crore
- But oil marketers such as Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum and GAIL ended up spending more than their targeted capital expenditure
A company official said the lower than targeted capex was because of project implementations getting delayed following the disruption caused to the supply chain and labour movement by Covid restrictions.
Oil and gas exploration and production projects typically involve the supply of equipment from overseas suppliers. Also, some facilities like rigs are operated by foreign crews. Lockdowns in several parts of the world, including India, restricted the movement of labour and disrupted supply chains.
ONGC’s overseas arm OVL too had a lower capital spending of Rs 5,351 crore in 2020-21 fiscal as compared to the targeted Rs 7,235 crore.
But, other downstream companies exceeded their capital spending targets by a wide margin.
Indian Oil Corporation (IOC) had budgeted Rs 26,233-crore capex, but ended up spending Rs 27,195 crore, the PPAC report showed. Hindustan Petroleum Corporation Ltd (HPCL), a unit of ONGC, spent Rs 14,036 crore against its target of Rs 11,500 crore. Similarly, Bharat Petroleum Corporation Ltd (BPCL) ended up spending Rs 10,697 crore against the budgeted Rs 9,000 crore. — PTI