Indian Oil to do capital expenditure of Rs 31,000 crore in FY 25

13 May 2024 , 10:03 AM

Indian Oil Corporation Limited (IOCL) intends to allocate a capital expenditure of ₹31,000 Crore for FY 2024-25. This will include  equity investments in joint ventures and subsidiaries, as conveyed to Moneycontrol.

In FY24, the oil marketing giant exceeded its planned capex of ₹30,395 Crore by spending ₹38,660 Crore. This heightened expenditure was directed towards both core business operations and green energy initiatives, aligned with IOCL’s target of achieving net-zero emissions by 2046.

On April 30, the Indian Oil board approved the implementation of 1 GW installed capacity of renewable energy projects through its wholly owned subsidiary, at an estimated cost of ₹5,215 Crore. These projects include standalone ground-mounted solar, standalone onshore wind, or wind-solar hybrid projects, to be executed in phases.

Indian Oil established the new subsidiary under its low-carbon, clean, and green energy business segment to support its efforts towards the net-zero emission target.

For the fourth quarter of FY24, the state-run oil marketing company reported a consolidated net profit of ₹5,487.92 Crore, marking a decline of 49% from the previous year’s figure of ₹10,841.23 Crore. This decline was primarily attributed to inventory losses, contrasting with gains in the preceding three months.

Other oil marketing companies (OMCs) like Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have planned capex of ₹16,000 Crore and ₹18,000 Crore respectively for FY25.

Both BPCL and HPCL also exceeded their planned capex in FY24, with BPCL spending ₹11,002 Crore and HPCL’s capex reaching ₹13,842 Crore, according to data from the oil ministry.

These state-owned OMCs are actively progressing towards their net-zero emission targets and are investing in expansions of their core businesses alongside green energy projects.

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