The oil & gas industry has kick-started projects, numbering 8,363 with an anticipated cost of Rs 5.88 trillion which resumed progressively since April 20 following all pandemic related standard operating procedures (SOPs).
These projects of oil & gas central public sector enterprises (CPSEs) and joint venture or subsidiaries, inter-alia, include refinery projects, biorefineries, exploration & production (E&P) projects, marketing infrastructure projects, pipelines, city gas distribution (CGD) projects and drilling or survey activities. The major 25 on-going projects of oil & gas CPSEs or JVs having an anticipated cost of Rs 1.67 trillion and having incurred Rs 78.61 billion worth of Capex have led to a generation of 7,656,825 man-days of work.
The Minister of Petroleum and Natural Gas & Steel, Dharmendra Pradhan has been holding in-depth reviews of all on-going projects of oil & gas companies, the recent one being on August 24. The petroleum industry is striving to work on a mission mode to generate employment and revive growth. The oil & gas entities in their role as key actors are working on a war footing and contributing to the green shoots of economic revival already visible through the backward and forward linkages of the oil & gas industry. Further, the oil & gas sector is a key driver of economic growth and, therefore, these projects provide a boost to the national economy and will trigger job creation, material movement.
Out of the total anticipated cost of these projects, approximately Rs 1.2 trillion is targeted to be incurred as Capex in FY 2020-21. In FY 2020-21 (August 15), around Rs 265.76 billion worth of Capex has already been incurred. Further, in FY 2020-21 (as on August 15), around Rs 32.58 billion was the payment accrued on labour account during the period.
338 Million Man-Days of Employment
A total of around 338 million man-days (direct as well as indirect) of employment is expected to be generated towards the completion of these 8,363 projects, out of which more than 97.6 million man-days of employment generation is targeted in FY 2020-21 itself. In FY 2020-21 (as on August 15), employment of more than 22 million man-days was generated through Capex in the execution of these oil & gas projects.
The oil & gas companies have reported that in FY 2020-21, they have planned an employment-oriented Opex of around Rs 416.72 billion out of which Rs 112.96 billion has already been spent. This Opex has the potential to generate around 145 million man-days of both direct and indirect employment. In FY 2020-21 (as on August 15), direct and indirect employment of around 44 million man-days had been generated through Opex.
In FY 2020-21, a total of around Rs 1.62 trillion (Capex and employment-oriented Opex) is targeted to be spent by oil & gas companies that have the potential to generate employment of around 240 million man-days. This amount spent would create a virtuous cycle of investments and will certainly play a crucial rule in the revival of the Indian economy and will also lead to job creation.