Covid shaves off one-fifth Capex of ONGC in FY21
New Delhi: Oil and gas producer ONGC spent about one-fifth less than its budget Capex in 2020-21 fiscal after Covid-19 related restrictions delayed pro...
New Delhi: Oil and gas producer ONGC spent about one-fifth less than its budget Capex in 2020-21 fiscal after Covid-19 related restrictions delayed projects but fuel marketers such as IOC exceeded targeted capital spending, a government report showed.
Oil and Natural Gas Corporation (ONGC) had budgeted Rs 32,502 crore of capital spending in the fiscal from April 2020 to March 2021 but ended up spending only Rs 26,441 crore, according to the report of the oil ministry's Petroleum Planning and Analysis Cell (PPAC).
A company official said the lower than targeted Capex was because of project implementations getting delayed following the disruption caused to the supply chain and labour movement by Covid restrictions. Oil and gas exploration and production projects typically involve the supply of equipment from overseas suppliers.
Also, some facilities like rigs are operated by foreign crews. Lockdowns in several parts of the world, including India, restricted the movement of labour as well as disrupted supply chains.
ONGC's overseas arm OVL too had a lower capital spending of Rs 5,351 crore in 2020-21 fiscal as compared to the targeted Rs 7,235 crore. But, other downstream companies exceeded their capital spending targets by a wide margin.