IOC, ONGC implementing projects worth Rs 3.57 trn to boost economy: Govt

The crude oil that ONGC produces from fields or which IOC imports, is converted into fuel such as petrol, diesel, and LPG at refineries and sold to customers
Oil PSUs such as IOC and ONGC are implementing about Rs 3.57 trillion worth of projects across the entire hydrocarbon value chain that will further enhance energy accessibility, create jobs and boost the economy, the Petroleum Ministry said on Monday.

In Twitter posts, the Ministry of Petroleum and Natural Gas said out of Rs 3.57 trillion being spenton 859 projects, over Rs 60,000 crore will be invested during fiscal 2020-21.

Oil Minister Dharmendra Pradhan and other senior officials of the ministry "reviewed the ongoing oil and gas projects started by PSUs since the resumption of economic activities from April 20, 2020".

"As on 1st July 2020 work on 859 projects worth about Rs 3.57 trillion involving in refinery, exploration and production, marketing infrastructure, pipelines, city gas distribution network and in the entire value chain of oil and gas is going on in full swing," it said.

The ministry, however, did not give a time frame for the investment of Rs 3.57 trillion.

While state-owned Indian Oil Corp (IOC) is implementing projects to upgrade oil refineries as well as expand pipeline network to take fuel to every nook and corner, Oil and Natural Gas Corp (ONGC) is exploring for oil and gas in desserts to deepsea.

The crude oil that ONGC produces from fields or which IOC imports, is converted into fuel such as petrol, diesel, and LPG at refineries and sold to customers.

"Out of the total anticipated cost of these projects more than Rs 60,000 crore will be spent in FY 2020-21," the ministry said.

A total of more than 97.4 million man-days of employment is expected to be generated from the completion of these projects. Out of this, more than 35 million man-days of employment is expected to be generated in fiscal through March 2021 (FY21) itself.

For the period between April 29 and June 30, employment of more than 4.89 milion man-days has been generated in the execution of these oil and gas projects, the ministry said adding Rs 1,395 crore has been disbursed to workers as payout during this period.

"These oil & gas projects will further enhance energy accessibility, create new employment opportunities, and give stimulus to economic growth," it said. Pradhan "advised the PSUs to be more 'Vocal for Local' to contribute to #AatmaNirbharBharatAbhiyan & strengthen #MakeInIndia."

'Vocal for Local' is the war cry for raising domestic capabilities to cut reliance on imports for meeting needs.


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel