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BPCL: Indian Oil, BPCL exceed their capex targets this year


Indian Oil Corp and Bharat Petroleum (BPCL) have exceeded their capital expenditure targets for the current financial year.

During April-February, India Oil spent Rs 31,800 crore against the full year’s capex target of Rs 28,550 crore while BPCL spent Rs 10,280 crore, crossing its target of Rs 10,000 crore, according to the oil ministry data.

Indian Oil, the nation’s top refiner and fossil fuel retailer, has been spending on a variety of projects from refinery and petrochemical expansion to enhancing natural gas infrastructure, fuel marketing and new pipelines. It aims to raise its refining capacity to 107 million tonnes per annum by 2025 from the current 70 million tonnes per annum.

BPCL, the nation’s third-largest refiner, too has been on a spending spree, using most of its capex in enhancing petrochemical capacity, pipelines, retail infrastructure and natural gas business.

Indian Oil’s Rs 31,800 crore spending this year is a third of the combined spending of Rs 97,800 crore by all state-run oil companies. By comparison, ONGC has spent Rs 24,670 crore in the 11 months through February. ONGC’s capex target for the current financial year is Rs 29,950 crore. ONGC’s overseas arm, ONGC Videsh, has spent only Rs 2,550 crore, staying far behind its target of Rs 8,200 crore for the year.

GAIL, the largest natural gas marketer and pipeline operator, too has almost touched its capex target for the year. It has spent Rs 7,200 crore in 11 months against the year’s target of Rs 7,500 crore.

In the previous three financial years, Indian Oil spent a total of Rs 90,000 crore towards capital expenditure using a mix of internal accruals and borrowings.At the end of December 2022, Indian Oil’s borrowings had risen to Rs 1,44,000 crore from Rs 1,11,000 crore in March, primarily due to high oil prices, which increased the working capital requirement as well as triggered marketing losses for the company.

Borrowings at BPCL and HPCL too have risen. BPCL’s debt has risen from Rs 26,000 crore in March last year to Rs 40,000 crore in December while HPCL’s debt increased from Rs 40,000 crore to Rs 64,000 crore in the same period.


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