Indian Economy News

8,363 projects, with an anticipated cost of Rs 5.88 lakh crore, have been kick-started in the Oil and Gas sector since 20th April this year

  • IBEF
  • August 26, 2020

Oil and Gas industry has kick-started economic activities/projects, numbering 8,363 with an anticipated cost of Rs 5.88 lakh crore (US$ 83.42 billion) which resumed progressively since 20.04.2020, following all pandemic related SOP.

These projects of Oil and Gas CPSEs and JV/Subsidiaries, inter-alia, include Refinery projects, Bio Refineries, E and P Projects, Marketing infrastructure projects, Pipelines, CGD projects, drilling/survey activities. The major 25 on-going projects of Oil and Gas CPSEs / JVs having an anticipated cost of Rs 1,67,248 crore (US$ 23.73 billion) and having incurred Rs 7,861 crore (US$ 1.12 billion) worth of Capex leading to generation of 76,56,825 man-days, are given in Annexure.

Minister of Petroleum and Natural Gas and Steel Shri Dharmendra Pradhan has been holding in-depth reviews of all on-going projects of Oil and Gas Companies, the recent one being on 24.08.2020. Under the Minister’s vision, Petroleum Industry has turned 'crisis into opportunity' and is striving to work on mission mode to generate employment and revive growth. Oil and Gas entities in their role as key actors are working on war footing and contributing to the green shoots of economic revival already visible through the backward and forward linkages of the oil and gas industry. Further, Oil and Gas sector is a key driver of economic growth and, therefore, these projects provide boost to the national economy and will trigger job creation, material movement.

Out of the total anticipated cost of these projects, approximately Rs 1.20 lakh crore (US$ 17.02 billion) is targeted to be incurred as CAPEX in FY 2020-21. In FY2020-21 (as on 15.08.2020), around Rs 26,576 crore (US$ 3.77 billion) worth of CAPEX has already been incurred. Further, in FY 2020-21 (as on 15.08.2020), around Rs 3,258 crore (US$ 462.19 million) has been reported to be payout accrued on labour account during this period.

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 8363 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 15.08.2020), 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 companies have reported that in FY 2020-21, they have planned an employment oriented OPEX of around Rs 41,672 crore (US$ 5.91 billion) out of which Rs 11,296 crore (US$ 1.60 billion) has already been spent. This OPEX of Rs 41,672 crore (US$ 5.91 billion) has potential to generate around 14.5 crore man-days employment (direct/indirect). In FY 2020-21 (as on 15.08.2020), direct/indirect employment of around 4.4 crore man-days have been generated through OPEX.

In FY 2020-21, a total of around Rs 1.62 lakh crore (US$ 22.98 billion) (CAPEX and employment oriented OPEX) is targeted to be spent by Oil and Gas companies that has 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 rule in revival of Indian economy and will also provide employment opportunities to people of our country.

Sl. No

Name of project

Company

Project Cost (Rs crore)

Project Cost (US$ billion)

CAPEX spent in FY 2020-21 (Rs crore)

CAPEX spent in FY 2020-21 (US$ million)

1

Poly Addition Project

HMEL

22,900

       3.25

1709

242.45

2

Rajasthan Refinery & Petrochemical Limited

HRRL

43129

6.12

947

91.79

3

Exploratory Drilling in Western Offshore Basin- SW

ONGC

2659

0.38

742

105.26

4

Visakh Refinery Modernisation Plant

HPCL

26264

3.73

685

97.18

5

Ennore - Thiruvallur - Bengaluru - Puducherry - Nagapattinam - Madurai - Tuticorin Natural Gas

IOCL

6025

0.85

571

81

6

Development Drilling in Mumbai High Asset

ONGC

1516

022

514

72.92

7

Development Drilling in Neelam & Heera Asset

ONGC

1325

0.19

488

69.23

8

Ethylene Glycol (MEG) Project at Paradip Refinery

IOCL

5654

0.80

346

49.08

9

30'' Crude Oil Pipeline in H-B section of PHBPL and Conversion of existing 18" twin pipelines in H-B section from Crude to Product and Gas service

IOCL

3696

0.52

313

44.40

10

Kochi-Koottanad-Bangalore-Mangalore Project

GAIL

5909

0.84

300

42.56

11

Paradip - Hyderabad Pipeline

IOCL

3338

0.47

200

28.37

12

Mumbai High South Redevelopment Phase IV

ONGC

2409

0.34

199

28.23

13

Motor Spirit Block Project (MSBP) at Kochi Refinery

BPCL

3289

0.47

146

20.71

14

Propylene Derivative Petrochemical Project (PDPP) at Kochi

BPCL

5246

0.74

109

15.46

15

Mumbai Refinery Expansion Project

HPCL

5060

0.72

103

14.61

16

Development of Surface Facilities for Production and Evacuation of Crude Oil and Natural Gas from Nadua and East Khagorijan

OIL

653

0.09

78

11.07

17

BS VI Project

MRPL

1810

0.26

73

10.36

18

Life Extension of well platforms

ONGC

2283

0.32

72

10.21

19

Dobhi-Durgapur Pipeline Project (Section 2 B)

GAIL

2433

0.35

58

8.23

20

BS VI Project

CPCL

1858

0.26

51

7.24

21

NCU(Phase-I) expansion along with revamp of MEG & BEU unit and C2-C3 at Panipat Refinery

IOCL

1636

0.23

51

7.24

22

2 G Ethanol plant (Bio Refinery), Assam

NRL

1750

0.25

45

6.38

23

LPG Import Facility at Paradip

IOCL

690

0.10

27

3.83

24

Infrastructure facilities at Gujarat Refinery and Dumad for Koyali-Ahmednagar-Solapur Pipeline

IOCL

906

0.13

24

3.40

25

Barauni Refinery Capacity Expansion from 6.0 to 9.0 MMTPA

IOCL

14810

2.10

10

1.42

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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