Oil & gas CPSEs are set to exceed their IEBR capex targets for the fifth straight year in FY25. By achieving₹97,667 crore in capital expenditure during the first eight months of the financial year, these enterprises have already met 83% of the annual target of₹1.18 trillion. This achievement highlights the sector’s consistent commitment to infrastructure growth and efficient project execution.
Oil & gas CPSEs lead in IEBR capex performance
The oil & gas CPSEs have a proven track record of exceeding IEBR capex goals year after year. Officials from the Petroleum and Natural Gas Ministry attribute this success to efficient planning and execution across various large-scale projects.
Currently, 145 projects valued at₹100 crore and above are under implementation, with a total approved cost of₹5.65 trillion. These include 78 greenfield projects worth₹2.84 trillion and 67 capacity expansion projects valued at₹2.81 trillion.
IEBR capex milestones achieved by oil & gas CPSEs
In FY24, CPSEs completed 54 projects at an anticipated cost of ₹525 crore. These projects span various domains:
- Refineries and marketing: 31 projects
- Exploration and production: 8 projects
- Gas projects: 4 projects
However, none of the 12 compressed biogas projects currently underway have been completed, which presents opportunities for enhanced focus.
Contributions
Key contributors to this success include Maharatna CPSEs such as ONGC, Oil India, Indian Oil, BPCL, HPCL, and GAIL. These companies continue to spearhead significant infrastructure and capacity-building projects.
Since 2014, a total of 379 projects worth ₹4.86 trillion have been completed. Among these, 225 were greenfield projects, while 154 were brownfield expansions. This balance of new and enhanced infrastructure underscores the sector’s strategic vision.
Budgetary shifts for oil & gas CPSEs in IEBR capex
Budgetary support for capital investments has risen significantly, reaching 2.8% of GDP in FY25 compared to 1.5% in FY20. In contrast, IEBR-financed investments have declined to 1.1% of GDP from 3.2% during the same period, reflecting a shift in funding priorities towards budgetary spending.
With a history of surpassing IEBR capex targets, oil & gas CPSEs remain pivotal in driving India’s energy infrastructure. Their ability to execute large-scale projects efficiently ensures progress in meeting the country’s growing energy demands and economic aspirations.
By consistently exceeding capex targets, these enterprises demonstrate excellence in innovation, project management, and strategic investment.
