Oil major PSUs willing to invest Rs 1.2 lakh crore in FY25

ONGC, IOC, and other oil PSUs will invest about Rs 1.2 lakh crore in the next fiscal year in oil and gas exploration, refineries, petrochemicals, and laying pipelines to meet the energy demands.

Oil major PSUs willing to invest Rs 1.2 lakh crore in FY25

According to the Budget 2024-25 data, the proposed investments are 5 percent higher than Rs 1.12 lakh crore spent in the previous budget year by the state-owned oil firms ending March 31. ONGC plans to spend a capital amount of Rs 30,800 crore in the next fiscal year. In comparison, ONGC Videsh Ltd [OVL] will invest 68 percent more at Rs 5,580 crore in 2024-25.

Indian Oil Corporation will spend around an investment outlay of Rs 30,910 crore where outlay includes Rs 3,299 crore in the petrochemical business and another Rs 236.48 crore in its small oil and gas exploration portfolio. BPCL has proposed to hike 30 percent higher capital spending at Rs 13,000 crore. HPCL, a subsidiary of ONGC, will invest Rs 12,500 crore in FY25, slightly higher than Rs 12,000 crore in the previous year.

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Oil India Ltd will invest around Rs 6,880 crore next year as compared to Rs 5,648 crore in the current fiscal year. Meanwhile, GAIL India Ltd will seek a planned investment of Rs 8000 crore in 2024-25 from Rs 9,750 crore in the previous fiscal year. The government has infused an equity infusion of Rs 30,000 crore in IOC, BPCL, and HPCL. Rs 15,000 crore has now been earmarked for the 2024-25 fiscal year.


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The board of IOC and BPCL had last year approved rights issues to raise to Rs 22,000 crore and Rs 18,000 crore, respectively. In the case of HPCL, no direct equity infusion will be there and would be likely through ONGC which will make the preferential issue of shares to the government.

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