New Delhi, Feb 5 (KNN) In a significant move to meet the rising energy demands of India, state-owned oil companies, including ONGC, IOC, and others, are set to invest approximately Rs 1.2 trillion in the upcoming fiscal year starting April 1.

The investment marks a 5 per cent increase from the Rs 1.12 trillion spent in the current fiscal year, as indicated in Budget 2024-25 documents.

ONGC, the top oil producer, plans a capital spending of Rs 30,800 crore, focusing on discovering new oil and gas reserves and bringing existing discoveries into production.

ONGC Videsh Ltd, its overseas arm, is set to invest 68 per cent more at Rs 5,580 crore in international oil and gas operations.

Indian Oil Corp (IOC), the leading oil refiner, takes the lead in investment with an outlay of Rs 30,910 crore.

The majority of this investment will go towards expanding and upgrading its seven refineries.

Despite a slight decrease from the previous fiscal year, IOC's investment underscores its commitment to the sector's growth.

Other major players, such as Bharat Petroleum Corp Ltd (BPCL) and Gas utility GAIL India Ltd, are also making significant contributions.

BPCL proposes a 30 per cent increase in capital spending at Rs 13,000 crore, primarily in its refining business.

GAIL India Ltd's investment is set to decline slightly to over Rs 8,000 crore as ongoing pipeline grid expansion projects near completion.

The budget documents revealed a delay in capital support to oil marketing companies in the interim budget for 2024-25.

Finance Minister Nirmala Sitharaman had allocated Rs 15,000 crore for equity infusion in IOC, BPCL, and HPCL in the next fiscal year, postponing the support initially planned for the current fiscal year.

Industry sources speculate that the decision might be tied to the improved profitability of the three companies this year, partially offsetting losses incurred in the previous fiscal.

The companies, including IOC and BPCL, have also approved rights issues to raise additional capital for future endeavours.

(KNN Bureau)