ONGC marks Rs 30,000 crores expenditure for FY22

Spread the love

New Delhi: Oil and Natural Gas Corporation (ONGC) aims for an output of 22.56 million tonnes of crude oil and 24.89 billion cubic metres of gas during the year. And Rs. 30,000 crores will be the total capital expenditure for the FY22 financial year in ONGC.


ONGC has currently provided a list of required goods and services for five years to cater to the needs of Oil and Gas Industry. Also to strengthen domestic supply chains ONGC reiterated the commitment of local procurement at business partners meet.


“The estimated amount by ONGC to spend Rs 15,500 crore in major lumpsum turnkey projects, Rs 13,600 crore on major services, Rs 2,250 crore on major material procurement in the financial year 2021-2022,” a company statement said. Moreover, 300 business partners were invited to pitch their suggestions, to make the collaborative ecosystems more efficient. ONGC also shared details with its partners on various initiatives such as the introduction of a new development order policy, introduction of an online vendor invoice management system, encouragement towards start-ups, as well as promoting its efforts to encourage indigenous business partners.


During the meeting, ONGC Chairman and Managing Director, Subhash Kumar mentioned the adopting technology-enabled process of ONGC, that can improve transparency and minimize human intervention.”
ONGC’s business partners sought relaxation in bid evaluation criteria, such as financial criteria of contracted partners, the experience of a group of companies to be considered for qualification, certification criteria of vessels, and realistic completion schedules for turnkey projects.


O P Singh, Director (Technology & Field Services) and Director In-charge of Materials Management, said that the focus on promoting localization initiatives is under ONGC’s push for ‘Aatmanirbhar Bharat’. “The move for promoting local ventures is a key driver in this reform exercise by ONGC, whose average annual purchases are more than INR 30,000 crore,” Singh said.