Oil PSUs have spent only a third of their capex in H1 of FY21: Ministry data

• The fastest spending, on the other hand, has been done by ONGC Videsh, which has spent 44.7 percent of its annual target of Rs 7,235 crore

• Disinvestment-bound BPCL is on the second spot after ONGC Videsh, and has spent Rs 9,000 crore or 29.4 percent of its annual capex plan

New Delhi: State-run oil marketing companies (OMCs) have spent nearly a third of their capex target for the current financial year, with ONGC Videsh being the fastest and Indian Oil Corporation (IOC) being the slowest, data sourced from the Ministry of Petroleum and Natural Gas showed. According to the data, Indian Oil has spent only 28.6 percent in the first half of the current financial year out of its planned capex of Rs 26,233 crore. The fastest spending, on the other hand, has been done by ONGC Videsh, which has spent 44.7 percent of its annual target of Rs 7,235 crore.

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State-run oil PSUs have been mandated by the government to increase their capex spending in order to increase public spending and help the government in reviving the economic slowdown induced by the COVID-19 pandemic. Finance Minister Nirmala Sitharaman has been holding review meetings with PSUs from various sector on a regular basis to keep track of their capex spending.

Oil PSUs have spent a total of Rs 31,956 crore in H1

The oil PSUs have spent a total of 32.4 percent of their capex, aggregating to a total of Rs 31,956 crore in the first half of the current financial year. The total planned capex for oil PSUs for FY2020-21 is Rs 98,522 crore, according to the data. 

Disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) is on the second spot after ONGC Videsh, and has spent Rs 9,000 crore or 29.4 percent of its annual capex plan. GAIL, on the other hand, has spent 33 percent of its target of Rs 5,412 crore, and ONGC has spent 32.7 percent of its target of Rs 32,502 crore. HPCL has also spent 32.7 percent of its overall capex target of Rs 11,500 crore.

COVID crisis has poses challenges for capex plans

A few months into the financial year, the oil PSUs had revised their capex targets, in view of the impact of the COVID-19 pandemic. However, even after the nationwide lockdown has been lifted and economic activities have been resumed, the COVID-19 pandemic has posed execution challenges on the way. The pandemic has disrupted supply chains and also availability of migrant labourers, as they are yet to return to project sites after the exodus earlier this year in the wake of the Coronavirus outbreak.

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