Union minister for petroleum and natural gas Dharmendra Pradhan has told state-run energy companies to expeditiously implement oil and gas sector projects worth Rs 5.88 lakh crore to generate employment and revive growth after the coronavirus disease (Covid-19) pandemic blows over, an oil ministry official said.
Out of the total capital expenditure of Rs 5.88 lakh crore, about Rs 1.20 lakh crore capital expenditure is expected in the current financial year, the official said, requesting anonymity.
Pradhan reviewed the progress of these projects on Monday, he said.
“These projects will create a virtuous cycle of investments and will play a crucial role in revival of the Indian economy after the Covid-19 pandemic,” said the official quoting Pradhan.
In the current financial year, companies have spent about Rs 26,576 crore on these projects until August 15. These firms have spent about Rs 3,258 crore on labour-related issues of these projects, he said.
Public sector undertaking (PSU) companies and their joint ventures are implementing 8,363 projects that include laying pipelines, upgrading refineries, setting up of petrochemical, exploration and production projects.
PSUs such as Oil and Natural gas Corporation (ONGC), Indian Oil Corporation (IOC), Hindustan petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), GAIL India Ltd, Oil India Ltd (OIL) and HPCL-Mittal Energy Ltd (HMEL) are implementing these projects.
“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 8,363 projects, out of which more than 9.76 crore man-days of employment generation is targeted in FY 2020-21 itself,” he said.
Over 2.2 crore man-days of employment have been generated through execution of these oil and gas projects until August 15, he added.
Energy companies have reported that in 2020-21, they have planned an employment oriented operational expenditure (OPEX) of around Rs 41,672 crore, out of that Rs 11,296 crore has been spent.
“This OPEX of Rs 41,672 crore has potential to generate around 14.5 crore man-days (direct/indirect). In FY 2020-21, direct/indirect employment of around 4.4 crore man-days have been generated through OPEX until August 15,” he said.
In 2020-21, a total of around Rs 1.62 lakh crore is targeted to be spent by these companies, including both capital and employment oriented operational expenditures, as they have the potential to generate around 24 crore man-days of employment, he added.
“The amount spent will create a virtuous cycle of investments. It will play a crucial role in the revival of the Indian economy. It will also provide employment opportunities to the people,” he said. Out of the total 8,363 projects, the anticipated cost for major 25 projects is Rs 1.67 lakh crore, he added.
