As much as Rs 5.88 lakh crore of spending is budgeted for 8,363 projects over the next few years, an official statement said
NEW DELHI: State-owned oil firms plan to spend about Rs 1.2 lakh crore in the fiscal year to March 2021 on oil and gas exploration and production and refineries in a bid to boost economic activity in the nation that has been hit hard by the COVID-19 pandemic.
As much as Rs 5.88 lakh crore of spending is budgeted for 8,363 projects over the next few years, an official statement said.
"Out of the total anticipated cost of these projects, approximately Rs 1.20 lakh crore is targeted to be incurred as capex in FY 2020-21," it said.
Oil minister Dharmendra Pradhan reviewed all ongoing projects of oil and gas companies in a bid to turn the crisis into an opportunity by scaling up work on the projects to create employment and revive growth.
"These projects of oil and gas PSUs, their joint ventures and subsidiaries include refinery projects, bio-refineries, exploration and production (E&P) projects, marketing infrastructure projects, pipelines, city gas distribution projects, drilling/survey activities," it said.
Oil and gas sector, it said, is a key driver of economic growth and these projects would boost the economy and will trigger job creation, material movement.
"Out of the total anticipated cost of these projects, approximately Rs 1.20 lakh crore is targeted to be incurred as capex in FY 2020-21. In FY 2020-21 (as on August 15, 2020), around Rs 26,576 crore worth of capex has already been incurred.
"Further, in FY 2020-21 (as on August 15, 2020), around Rs 3,258 crore has been reported to be payout accrued on labour account during this period," it said.
A total of around 33.8 crore man-days (direct as well as indirect) of employment is expected to be generated towards the completion of these 8,363 projects, out of which more than 9.76 crore man-days of employment generation is targeted in FY 2020-21 itself.
In FY 2020-21 (as on August 15, 2020), employment of more than 2.2 crore man-days have been generated through capital expenditure in the execution of these oil and gas projects.
Oil and gas PSUs have planned an employment-oriented opex of around Rs 41,672 crore in FY21 which can generate direct/indirect employment. "Out of this, Rs 11,296 crore has already been spent," the statement said.
This opex of Rs 41,672 crore has the potential to generate around 14.5 crore man-days (direct/indirect). In FY 2020-21 (as on August 15, 2020), direct/indirect employment of around 4.4 crore man-days has been generated through opex.
In FY 2020-21, a total of around Rs 1.62 lakh crore (capex and employment-oriented opex) is targeted to be spent by oil and gas companies that have the potential to generate employment of around 24 crore man-days (direct/indirect).
"This amount spent would create a virtuous cycle of investments and will certainly play a crucial role in the revival of the Indian economy and will also provide employment opportunities to people of our country," the statement said.