Indian Oil dazzles in economic activities worth Rs 5.88 lakh cr during Covid

Indian Oil dazzles in economic activities worth Rs 5.88 lakh cr during Covid

Maharatna PSU Indian Oil Corporation Ltd (IOCL) has starred in a suite of economic projects undertaken by the country’s oil and gas industry during peak Covid pandemic. 

The industry has taken up work on a total of 8363 projects valued at Rs 5.88 lakh crore since April 20 this year, conforming to the Standard Operating Procedure (SOP) prescribed for the pandemic.

In this context, IOCL is progressively implementing a slew of projects – Ennore – Thiruvallur – Bengaluru – Puducherry – Nagapattinam – Madurai – Tuticorin Natural Gas, Ethylene Glycol (MEG) Project at Paradip Refinery, 30” Crude Oil Pipeline in H-B section of PHBPL and Conversion of existing 18″ twin pipelines in H-B section from Crude to Product and Gas service, Paradip – Hyderabad Pipeline, NCU(Phase-I)expansion along with revamp of MEG & BEU unit and C2-C3 at Panipat Refinery, LPG Import Facility at Paradip, Infrastructure facilities at Gujarat Refinery and Dumad for KoyaliAhmednagar-Solapur Pipeline and Barauni Refinery Capacity Expansion from 6.0 to 9.0 MMTPA.

Under the stewardship of Oil Minister Dharmendra Pradhan, the petroleum industry has turned ‘crisis into opportunity’ and is striving to work on mission mode to generate employment and revive growth.

Oil and Gas entities in their role as key actors are working on a war footing and contributing to the green shoots of economic revival already visible through the backward and forward linkages of the oil and gas industry.

Out of the total anticipated cost of these projects, approximately Rs 1.20 lakh crore is targeted to be incurred as CAPEX in FY 2020-21. In FY 2020-21 (as on August 15, 2020), around Rs 26,576 crore worth of CAPEX has already been incurred. Further, in FY 2020-21 (as on 15.08.2020), around Rs 3,258 crore has been reported to be payout accrued on labour account during this period.

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 8363 projects, out of which more than 9.76 crore man-days of employment generation is targeted in FY 2020-21 itself.

In FY 2020-21 (as on 15.08.2020), employment of more than 2.2 crore man-days have been generated through capital expenditure in the execution of these Oil & Gas projects.

Oil & Gas companies have reported that in FY 2020-21, they have planned an employment oriented OPEX (Operational Expenditure) of around Rs 41,672 crore which can generate direct/indirect employment, out of which Rs 11,296 crore has already been spent.

This OPEX of Rs 41,672 crore has the potential to generate around 14.5 crore man-days (direct/indirect). In FY 2020-21 (as on 15.08.2020), direct/indirect employment of around 4.4 crore man-days has been generated through OPEX.

In FY 2020-21, a total of around Rs 1.62 lakh crore (CAPEX and employment-oriented OPEX) is targeted to be spent by Oil & Gas companies that have potential to generate employment of around 24 crore man-days (direct/indirect).

This amount spent would create a virtuous cycle of investments and will certainly play a crucial role in the revival of the Indian economy and will also provide employment opportunities to people of our country.

The major 25 ongoing projects have an anticipated cost of Rs 1,67,248 crore and have incurred Rs 7861 crore worth of capex expenditure leading to the generation of 76,56,825 man-days.

Article Written By Dibyajit Sahu

Image Source: Google