ONGC, IOCL and other oil PSUs will invest about Rs 1.2 lakh crore in the coming financial year, starting April 1, in oil and gas exploration, refineries, petrochemicals and laying pipelines to meet the needs of the world’s fastest-growing, energy-consuming nation.

The investment proposed in 2024-25 is a 5 per cent higher than Rs 1.12 lakh crore spent by State-owned oil corporations in the current financial year that ends on March 31, according to Union Budget 2024-25 documents.

ONGC has a planned capital spending of Rs 30,800 crore in the next financial year. This expenditure in finding new reserves of oil and gas and bringing to production discoveries it has already made is slightly higher than Rs 30,500 crore of capex in 2023-24 (April 2023 to March 2024). It is developing discoveries on both east and west coasts of the country.

The top oil producer’s overseas arm, ONGC Videsh (OVL), will invest 68 per cent more at Rs 5,580 crore in 2024-25 in oil and gas operations abroad when compared with the previous financial year.

IOCL, the country’s top oil refiner, will be the top spender with an investment outlay of Rs 30,910 crore, with the bulk of it in expansion and upgrade of its seven refineries that produce fuel. This outlay also includes Rs 3,299 crore in the petrochemical business and another Rs 236.48 crore in the small oil and gas exploration portfolio it has.

The investment planned by IOC is less than Rs 31,254 crore spending in the current financial year.

BPCL has proposed a 30 per cent higher capital spending at Rs 13,000 crore, two-thirds of which will be in its core refining business.

Gas utility GAIL India will see its planned investment decline to over Rs 8,000 crore in 2024-25 from Rs 9,750 crore in FY24 as most of its pipeline grid expansion projects are nearing completion.

HPCL, a subsidiary of ONGC, will invest Rs 12,500 crore in FY25, marginally higher than Rs 12,000 crore in the previous year.

Oil India, the nation’s second-largest oil producer, will invest Rs 6,880 crore next year as compared to Rs 5,648 crore in the current financial year.