India’s state-run oil companies have demonstrated robust financial performance in the fiscal year 2023-24, surpassing their capital expenditure (capex) targets by a significant margin.
According to data from the oil ministry, these companies collectively invested a staggering ₹1,28,000 crore, marking a remarkable achievement in infrastructure development and capacity enhancement within the oil sector. The remarkable feat of exceeding capex targets was led by prominent players such as Indian Oil Corporation (IndianOil), Oil and Natural Gas Corporation (ONGC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), GAIL (India) Limited, and Oil India Limited. Each of these entities outperformed their initial annual capex projections for the fiscal year, signalling a strong commitment to growth and expansion initiatives. IndianOil, the nation’s premier refiner and fossil fuel retailer, emerged as the top spender among state oil firms, with an expenditure of ₹38,660 crore in FY24. This figure exceeded both the initial outlay of ₹30,395 crore and the previous year’s spending of ₹35,205 crore. IndianOil’s strategic investments encompass a diverse range of projects, including the construction of a greenfield refinery in Tamil Nadu and expansions in refining, petrochemicals, pipelines, gas infrastructure, and biofuel production facilities.
Similarly, Hindustan Petroleum made significant strides in infrastructure development, investing ₹13,842 crore in FY24, primarily directed towards projects such as the construction of a greenfield refinery-cum-petrochemical complex in Barmer, Rajasthan. The company’s proactive approach to investment has also focused on expanding its natural gas, biofuel, and transportation infrastructure. Other key players like BPCL, GAIL, and Oil India also demonstrated commendable performance, with each entity surpassing its respective capex targets for the fiscal year. BPCL’s expenditure of ₹11,000 crore, GAIL’s spending of ₹10,388 crore, and Oil India’s investment of ₹5,390 crore underscore their commitment to enhancing operational capabilities and driving growth across the oil and gas value chain. The substantial investments made by these state oil companies not only bolster domestic infrastructure but also contribute to India’s energy security and self-reliance objectives. With a robust foundation laid through strategic capital expenditure, the oil sector is poised for sustained growth and resilience in the years to come.