Project delays pressure ONGC to chop FY21 capital expenditure

ONGC reduce capital expenditure — or capex — by 12.2 per cent in monetary yr 2020-21 to Rs 26,441 crore, from Rs 30,115 crore in FY20, as main tasks confronted delays attributable to Covid-related restrictions. Data launched by the Petroleum Planning and Analysis Cell confirmed that Oil and Natural Gas Corporation (ONGC) fell 18.6 per cent wanting the focused capital expenditure of Rs 32,502 crore for 2020-21.
State-owned refiners together with Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum , nonetheless, have been capable of surpass focused investments final fiscal in keeping with the Centre’s efforts to stimulate the financial system by capital expenditure.
Project delays attributable to restrictions have been the important thing reason for decrease capital expenditure final fiscal, based on an ONGC official, who famous that giant tasks involving main expenditure had confronted delays attributable to Covid-19.
Finance Minister Nirmala Sitharaman had, final October, requested giant state-owned firms together with these within the oil and gasoline sector to spice up capex to stimulate the financial system.

An official famous that the federal government has really useful that ONGC considerably enhance its capital expenditure in FY22 in keeping with the federal government’s aim of boosting home crude oil and pure gasoline manufacturing.