India has stepped up investment on oil and gas public sector enterprises, primarily on refiners, even as global energy majors cut capex amid low crude oil prices.
Budgeted capital expenditure for ONGC and GAIL India was lowered for 2016-17. In the Union Budget 2016, the government has proposed to invest Rs 87214.56 crore in 2016-17 through the 11 public sector companies under the Ministry of Oil and Gas. In the previous year 2015-16, the government had budgeted an investment of Rs 76565.46 crore on these companies, which stood revised at Rs 76874.75 crore. The government increase the investment for ONGC’s subsidiary ONGC Videsh to Rs 14843.00 in FY17 from Rs 8488 crore in FY16, it slashed the capex for the parent.