India’s Steel and Petroleum Minister, Dharmendra Pradhan has urged state-owned enterprises to expedite the implementation of oil and gas projects. Petroleum infrastructure projects worth Rs5.88 trillion ($79.13bn) are in progress to revive economic growth and spur steel demand. These projects include refinery projects, biorefineries, E&P projects, pipelines, CGD projects, marketing infrastructure projects and drilling/survey activities.
In May, the minister had urged public sector oil companies to increase their procurement of domestic steel pipes for natural gas pipeline projects chalked out for the fiscal year 2021.
Of the total expenditure, Rs1.20 trillion capital expenditure is expected in the current financial year. So far, the companies have spent Rs265bn on these projects until August 15. The projects include laying of pipelines, upgrading refineries, setting up of petrochemical, exploration and production projects.
Around 8,363 projects are in the pipeline, of which 25 major projects with an investment outlay exceeding Rs1,672bn are on-going. These projects will generate steady steel demand, aid economic recovery and increase employment opportunities.