Oil, Gas CPSEs set to exceed IEBR capex for fifth-straight year in FY25

According to officials, central public sector enterprises (CPSEs) in the oil and gas sector are expected to exceed their annual internal and extra-budgetary resources (IEBR) capital expenditure targets in FY25 for the fifth consecutive year.

In the first eight months of the financial year, these CPSEs have completed 83% of their Rs 1.18 trillion capex target, amounting to Rs 97,667 crore, as stated by officials from the Petroleum and Natural Gas Ministry.

“CPSEs in this sector have a strong track record of surpassing their IEBR targets. The wide range of projects currently underway has contributed to effective funding and has helped meet project deadlines,” an official noted.

There are currently 145 projects costing Rs 100 crore or more under implementation by public sector oil and gas companies, as per the ministry's Pariyojana portal. These projects have a total approved cost of Rs 5.65 trillion. Out of these, 78 projects are greenfield projects amounting to Rs 2.84 trillion, while 67 projects focused on capacity expansion cost Rs 2.81 trillion.

In FY24, 54 projects were completed at an estimated cost of Rs 525 crore. Refineries and marketing make up the majority of these projects, with 31 and 10 projects respectively. Additionally, there are eight projects in the exploration and production sector and four in the gas projects category. Notably, none of the 12 ongoing projects in the compressed biogas segment have been completed to date, according to the data.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : PESB Recommends Director (Finance) for SPMCIL

Upstream oil companies such as Oil and Natural Gas Corporation and Oil India, along with oil marketing companies like Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, as well as natural gas supplier GAIL, are recognized as Maharatna Central Public Sector Enterprises (CPSEs) within the sector.

Since 2014, a total of 379 projects with costs of Rs 100 crore and above have been completed, amounting to a total expenditure of Rs 4.86 trillion. Among these projects, 225 were greenfield projects costing Rs 2.52 trillion, while 154 were brownfield projects with a cost of Rs 2.34 trillion.

According to a report by the New Delhi-based research institute PRS Legislative Research, budgetary support for capital outlay has risen from 1.5% of GDP in 2019-20 to 2.8% in 2024-25. This increase has been facilitated by a higher fiscal deficit at the Centre.

In contrast, capital investments by public enterprises financed through Internal and Extra Budgetary Resources (IEBR) have decreased from 3.2% of GDP to 1.1% over the past five years. This shift indicates a substitution of capital investment by public entities with increased budgetary spending.

Read Also : 1337 railway stations to develop under Amrit Bharat Station Scheme in country: Govt