33.8 Crore man-days of employement to be generated in Oil and Gas sector : 8,363 projects, estimated 5.88 lakh Crore Rs kickstarted since 20th April

Date: 
25.08.2020

Oil & Gas industry has kick-started economic activities/projects, numbering 8,363 with an anticipated cost of Rs 5.88 lakh crore which resumed progressively since 20.04.2020, following all pandemic related SOP. These projects of Oil & Gas CPSEs & JV/Subsidiaries, inter-alia, include Refinery projects, Bio Refineries, E&P Projects, Marketing infrastructure projects, Pipelines, CGD projects, drilling/survey activities. The major 25 on-going projects of Oil & Gas CPSEs / JVs having an anticipated cost of Rs 1,67,248 crore and having incurred Rs 7861 crore worth of Capex leading to generation of 76,56,825 mandays, are given in Annexure.

Minister of Petroleum and Natural Gas & Steel Shri Dharmendra Pradhan has been holding in-depth reviews of all on-going projects of Oil & Gas Companies, the recent one being on 24.08.2020. Under the Minister’s vision, 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 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. Further, Oil and Gas sector is a key driver of economic growth and, therefore, these projects provide boost to the national economy and will trigger job creation, material movement. 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 15.08.2020), 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 of around Rs 41,672 crore out of which Rs 11,296 crore has already been spent. This OPEX of Rs 41,672 crore has potential to
generate around 14.5 crore man-days employment (direct/indirect). In FY 2020-21 (as on 15.08.2020), direct/indirect employment of around 4.4 crore man-days have 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 has 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 rule in revival of Indian economy and will also provide employment opportunities to people of our country.

List of major on-going Projects of Oil & Gas CPSEs / JVs Status as on 15/08/2020

S.No Name of project Company Project Cost (Rs crore) CAPEX spent in FY 2020-21 (Rs crore)
1 Poly Addition Project HMEL 22900 1709
2 Rajasthan Refinery & Petrochemical Limited HRRL 43129 947
3 Exploratory Drilling in Western Offshore Basin- SW ONGC 2659 742
4 Visakh Refinery Modernisation Plant HPCL 26264 685
5 Ennore - Thiruvallur - Bengaluru - Puducherry - Nagapattinam - Madurai - Tuticorin Natural Gas IOCL 6025 571
6 Development Drilling in Mumbai High Asset ONGC 1516 514
7 Development Drilling in Neelam & Heera Asset ONGC 1325 488
8 Ethylene Glycol (MEG) Project at Paradip Refinery IOCL 5654 346
9 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 Services IOCL 3696 313
10 Kochi-Koottanad-Bangalore-Mangalore Project GAIL 5909 300
11 Paradip - Hyderabad Pipeline IOCL 3338 200
12 Mumbai High South Redevelopment Phase IV ONGC 2409 199
13 Motor Spirit Block Project (MSBP) at Kochi Refinery BPCL 3289 146
14 Propylene Derivative Petrochemical Project (PDPP) at Kochi BPCL 5246 109
15 Mumbai Refinery Expansion Project HPCL 5060 103
15 Mumbai Refinery Expansion Project HPCL 5060 103
16 Development of Surface Facilities for Production and Evacuation of Crude Oil and Natural Gas from Nadua and East Khagorijan OIL 653 78
17 BS VI Project CPCL 1858 51
18 Life Extension of well platforms ONGC 2283 72
19 Dobhi-Durgapur Pipeline Project (Section 2 B) GAIL 2433 58
20 BS VI Project CPCL 1858 51
21 NCU(Phase-I)expansion along with revamp of MEG & BEU unit and C2-C3 at Panipat Refinery IOCL 1636 51
22 2 G Ethanol plant (Bio Refinery), Assam NRL 1750 45
23 LPG Import Facility at Paradip IOCL 690 27
24 Infrastructure facilities at Gujarat Refinery and Dumad for Koyali-Ahmednagar-Solapur Pipeline IOCL 906 24
25 Barauni Refinery Capacity Expansion from 6.0 to 9.0 MMTPA IOCL 14810 10