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Budget 2024: Govt allocates ₹1190 billion for petroleum and natural gas, focus on strategic reserves and infrastructure
The ministry of petroleum and natural gas has been allocated a total budget of ₹1194.0252 billion for the fiscal year 2024-2025, reflecting a significant financial commitment to bolster India’s energy infrastructure and capabilities. This allocation, comprising both budget support and Internal and Extra Budgetary Resources (IEBR), underscores the government’s focus on securing energy resources and supporting the sector’s growth.
The Oil and Natural Gas Corporation (ONGC) has been a major beneficiary, with an allocation of ₹308 billion for 2024-2025. This represents a steady increase from ₹305 billion in the revised budget for 2023-2024 and ₹301.25 billion in the initial 2023-2024 budget. This continuous increase highlights ONGC’s critical role in India’s energy sector and the government’s intention to support its exploration and production activities.
In contrast, the Gas Authority of India Limited (GAIL) has seen a significant reduction in its budget allocation. For 2024-2025, GAIL has been allocated ₹48.86 billion, a sharp decrease from ₹68.88 billion in the revised 2023-2024 budget and ₹60.0249 billion in the initial budget for 2023-2024. This reduction might indicate a shift in strategic priorities or a realignment of GAIL’s project pipeline.
Bharat Petroleum Corporation Limited (BPCL) is set to receive ₹20 billion for the fiscal year 2024-2025, down from ₹21.50 billion in the revised budget for 2023-2024 and ₹23.60 billion in the initial 2023-2024 budget. This decrease could reflect the completion of key projects or a strategic pivot in BPCL’s operational focus.
Indian Oil Corporation Limited (IOCL) has been allocated ₹273.7404 billion for 2024-2025, a slight increase from ₹270.6445 billion in the revised 2023-2024 budget and significantly higher than the ₹257.4131 billion allocated in the initial 2023-2024 budget. This increase suggests continued investment in refining and marketing operations, crucial for maintaining India’s energy supply chain.
Oil India Limited has received an increased allocation of ₹68.80 billion for 2024-2025, up from ₹56.48 billion in the revised 2023-2024 budget and ₹48.96 billion in the initial budget for 2023-2024. This significant boost underscores the company’s growing role in exploration and production.
Oil and Natural Gas Corporation Videsh Limited(OVL) has also seen a notable increase in its budget, with ₹55.8001 billion allocated for 2024-2025, up from ₹33.1123 billion in the revised 2023-2024 budget. This increase highlights the strategic importance of OVL’s international ventures and the need to secure overseas energy assets.
The Refinery and Marketing Sector as a whole has been allocated ₹571.7604 billion for 2024-2025, compared to ₹547.5795 billion in the revised 2023-2024 budget. Within this sector, Hindustan Petroleum Corporation Limited (HPCL) has been allocated ₹107.70 billion, up from ₹102.10 billion in the previous year, reflecting ongoing and new refining projects. Numaligarh Refinery Limited’s budget has increased to ₹89.86 billion from ₹87.6550 billion, highlighting the expansion and modernization efforts.
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