State-run oil and gas firms set to invest Rs 1.62 trillion this year

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State-run oil and gas firms are set to invest Rs 1.62 trillion in FY21 – including capital expenditure (capex) and operational expenditure (opex) — which is expected to generate employment of 240 million man-days.

At present, the sector is seeing work on 8,363 projects with an anticipated cost of Rs 5.88 trillion.

These expenditure figures, expected to give a fillip to the employment scenario, were lined up by the companies in a review meeting by Petroleum Minister Dharmendra Pradhan recently.

"The amount spent will create a virtuous cycle of investments and play a crucial rule in reviving the economy. It will also provide employment opportunities to people," said the ministry. The major 25 ongoing projects have an anticipated cost of Rs 1.67 trillion and have incurred Rs 7,861 crore of capex, leading to generation of 7.65 million man-days so far.

Of the total anticipated cost of such projects, close to Rs 1.2 trillion is targeted to be incurred as capex through FY20-22. In FY21, Rs 26,576 crore of capex had already been incurred till August 15. An amount of Rs 3,258 crore was paid on account of labour during this period.

Source of: Business Standard