The Oil & Natural Gas Corporation (ONGC) is planning to spend Rs 300 billion during 2021-22 to boost oil and gas output. Around 50 per cent of the proposed expenditure will be spent on major lumpsum turnkey projects. Meanwhile, around Rs 136 billion will be spent on major services and the remainder on material purchases. The spending commitments were announced as ONGC makes increased efforts to improve its business procedures and promote local businesses as part of the Aatmanirbhar Bharat drive.
ONGC’s profits have also bounced back as the company’s net income stood at Rs 67.3 billion for the quarter ending March 2021 compared to a loss of Rs 32.1 billion during the corresponding period of the previous year. The rise in net income was driven majorly by higher crude oil prices which boosted realisations from oil sales.