State-owned <keyword id="20039950" type="General" weightage="20" keywordseo="Bharat-Petroleum-Corporation" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharat Petroleum Corporation" meta.hostid="153" meta.entityid="Bharat Petroleum Corporation">Bharat Petroleum Corporation</keyword> plans to invest Rs 1.7 lakh crore over the next five years to grow its core oil refining and fuel marketing business as well as in 'future big bets' of <keyword id="20115883" type="General" weightage="20" keywordseo="petrochemicals" source="keywords">petrochemicals</keyword> and <keyword id="19895435" type="General" weightage="20" keywordseo="green-energy" source="keywords">green energy</keyword>, its chairman G Krishnakumar has said. At present, Bharat Petroleum Corporation Ltd (<keyword id="19908646" type="General" weightage="100" keywordseo="BPCL" source="keywords" meta.keywordsubtype="org" meta.entityname="BPCL" meta.hostid="153" meta.entityid="BPCL">BPCL</keyword>) owns about 14 per cent of India's oil <keyword id="20064251" type="General" weightage="20" keywordseo="refining-capacity" source="keywords">refining capacity</keyword> and about a quarter of the fuel retailing network. It plans to grow these businesses while foraying into newer areas. The firm is now implementing the first phase of a multi-decade aspirational journey in the form of '<keyword id="22826627" type="General" weightage="20" keywordseo="project-Aspire" source="keywords">Project Aspire</keyword>' - its five-year strategic framework that is based on two fundamental pillars - 'Nurturing the Core' and 'Investing in Future Big Bets', he said in the company's latest annual report. "Our mid-term strategy is on a continuum. While we remain committed to growing our core businesses, which include refining and marketing <keyword id="20037698" type="General" weightage="20" keywordseo="petroleum-products" source="keywords">petroleum products</keyword> and upstream, we are equally focused on our big bets comprising petrochemicals, gas, green energy, non-fuel retail, and digital. "Project Aspire, with a planned capex outlay of around Rs 1.70 lakh crore over five years, will enable us to create long-term value for our stakeholders while preserving our planet for future generations," he said. "A cornerstone of our long-term strategy, Project Aspire, with a Rs 1.70 trillion investment, marks the initial phase of our multi-decade odyssey to shape the energy of tomorrow. This, coupled with our robust balance sheet, fuels our ambition to lead the <keyword id="19951336" type="General" weightage="20" keywordseo="energy-transition" source="keywords">energy transition</keyword>." The company is targeting net zero carbon emissions from its operations by 2040. "BPCL has drawn a net-zero roadmap, which encompasses renewable power, green hydrogen, compressed biogas, carbon capture, utilisation, and storage (CCUS), efficiency improvement and the offsets procurements. This would require a phased capital outlay of approximately Rs 1 lakh crore till 2040, and the company is geared for the same," he said. The firm's bet on continuing investing in core businesses is based on the premise that India's booming economy will drive a 4-5 per cent annual increase in energy demand and petroleum product consumption. Also, the demand for major petrochemical products is expected to rise by 7-8 per cent annually. "This presents a strategic opportunity to expand refining capacity alongside the development of integrated petrochemical complexes," he said. BPCL is implementing new petrochemical projects at two of its three oil refineries. A Rs 49,000 crore ethylene cracker project is being implemented at the Bina refinery in Madhya Pradesh, alongside raising oil refining capacity from the current 7.8 million tonnes to 11 million tonnes annually by 2029. A polypropylene project is being set up at Kochi refinery in Kerala by 2027. "To meet the anticipated demand beyond our planned expansions in Bina and Kochi, we are actively evaluating options for setting up additional integrated refining and petrochemical capacities within the next 5-7 years," Krishnakumar said without disclosing either the investments or the location of such a project. Andhra Pradesh is being speculated as the likely site after Prime Minister Narendra Modi's BJP and regional party TDP stormed to power in the state in recently concluded assembly elections. TDP has been demanding the implementation of a refinery-cum-petrochemical complex that was promised as part of the package when the state was split more than a decade back. "Our investment in the petrochemical project is consistent with our aspiration of becoming a dominant player in India's petrochemical growth story," Krishnakumar said. On energy transition, he said BPCL is targeting to build 2 gigawatts (GW) of <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword> capacity by 2025 and 10 GW by 2035. "We are investing nearly Rs 1,000 crore to establish two 50 MW captive wind power plants in Maharashtra and Madhya Pradesh, which will support our refineries in Mumbai and Bina." The firm is also investing around Rs 300 crore in 72 MWp of solar project in Prayagraj, Uttar Pradesh. "Concomitantly, we are executing green hydrogen projects aligned with the National Green Hydrogen Mission. These projects include a 5 MW electrolyser plant at Bina refinery and a green hydrogen refuelling station with an indigenously developed electrolyser at Kochi," he noted. BPCL, he said, is committed to supporting the transition to electric mobility through a robust and accessible charging infrastructure. The company has installed over 3,000 charging stations, including fast chargers for cars and two-wheelers. 900 fast chargers are installed across 120 highway corridors, which helps address the range, discovery and time anxiety of electric vehicle (EV) owners. "Over the next five years, we aim to install 4-wheeler fast chargers at approximately 6,000 retail outlets across 400 highway corridors, prioritising high-traffic corridors like the Golden Quadrilateral and N-S/E-W highways," he said. On biofuels, he said BPCL sells petrol with 20 per cent ethanol blend at 4,279 out of its over 22,000 petrol pumps. It is also building compressed biogas plants using municipal solid waste to make gas that can be used as CNG in automobiles. The firm is also exploring partnerships in the arena. "These combined efforts, along with the upcoming commissioning of a bio-ethanol refinery, positions BPCL as a key player in India's transition to a greener fuel mix, creating a robust ecosystem for the adoption of cleaner fuels across the country," he added. BPCL is establishing a corporate venture capital fund to invest directly in promising startups. "In order to thrive in this complex and challenging business landscape, we will leverage our agility and focus on operational excellence to ensure continued success. Safety and reliability will remain our top priorities, guiding all our actions. We are committed to upholding the highest standards of corporate governance," he added. He said the energy sector of India stands at an inflection point. "The nation has an ambitious vision of becoming a USD 30 trillion developed economy by 2047. 'Viksit Bharat @2047' will necessitate an almost fourfold increase in primary energy demand." India's exponential growth trajectory will propel it to a pivotal role in the global energy market, accounting for roughly 12 per cent of world energy consumption by 2047. "The key strategic objectives for India in the energy sector will entail significant expansion in refining capacities, raising the share of gas in the energy basket from about 6 per cent to 15 per cent, establishing leadership in petrochemical exports, and sharply reducing energy imports from current levels of 47 per cent to below 25 per cent by 2030 and to zero by 2047," he said. India is targeting 500 GW of non-fossil fuel energy capacity, sourcing half of its energy needs from renewables, reducing carbon emissions by 1 billion tonnes and lowering carbon intensity by 45 per cent by 2030 with the ultimate goal of net-zero emissions by 2070. "Building on its strong Indian energy presence, BPCL aspires to meet 7-10 per cent of the nation's primary energy demand by 2047," he said.

BPCL planning Rs 1.7 lakh crore spend to expand core business, new energy foray over next five years

<ul><li>Most PSU oil stocks gave over 60% returns in the last one year with the exception of ONGC and BPCL.</li><li>ONGC and OIL stock is trading at a discount to international peers in spite of its recent run-up.</li><li>Analysts are divided on GAIL as its petchem capex and losses are a cause of concern.</li><li>OMCs like Indian Oil, HPCL and BPCL have closed the valuation gap and a rally is unlikely from hereon, believe brokerages. </li></ul>Few stocks can claim to have juice left as markets hit staggering heights as 2023 bid goodbye. Public sector unit or PSU oil stocks like ONGC, OIL and GAIL are a rare few which still hold value. Thanks to production expansions, regulatory consistency and more the government owned companies are set to better days ahead. Most of the oil stocks have given over 60% returns in the last one year, with the exception of BPCL and ONGC. Yet, the upstream companies especially are trading at a discount, claim brokerages. Thus, going ahead, Antique Stock Broking believes that ONGC and Oil India remain among the cheapest upstream stocks globally despite a rally in the last six months. “We believe the current valuations do not fully reflect the jump in realization of both oil and gas over the last 6-18 months and the resultant cash flow,” it said. Both the companies are expected to see significant free cash flows starting FY24, after the gas prices increased via Administered Pricing Mechanism by the government. Not only will it improve margins, but improved price realization would lead to much more attractive returns on their annual capex. “We believe positive momentum in the upstream sector would be led by a shift towards companies with undemanding valuation, while we find fundamental support led by steady earnings and cash flows on the back of regulatory consistency, stable commodity prices, and margins and triggers in the core production outlook,” said a report by Emkay. The long-term fundamentals of the stocks are intact say analysts even as government's changes in windfall tax might cause shortt-term movements. ONGC &amp; OIL: The production rise Oil India’s production has already increased in the current financial year, while ONGC is expected to commission KG 98/2 gas fields soon. There are other production increases planned as well. ONGC targets to increase production to 50mmtoe by FY28 from 40mmtoe in FY23. It will be driven by 23 ongoing projects, with a total capex of ₹60,000 crore. Oil India’s production increase plans will commence sooner as it expects IndraDhanush Gas Grid (IGGL) to be completed by March 24. Apart from increased production, it also aims to secure a premium pricing for its gas, adding to the stock’s appeal. “The management expects to secure a 20% premium on the current gas pricing formula for gas produced through new wells. The company is confident that wells utilizing IOR/EOR techniques will also qualify for the 20% premium, provided the company meets the minimum threshold achieved in the last decade,” said a report by Motilal Oswal. Moreover, dividend yield of both these companies is also good – at around 5-6%, beating their PSU peers who average at around 4%. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1 year returns </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ONGC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">36.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">OIL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">76% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">GAIL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">72.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian Oil </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">65% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HPCL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">68% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BPCL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">35% </td></tr></tbody><tbody></tbody><tbody></tbody></table>Source: BSE GAIL: Value unlocking in offing On GAIL, which too is an upstream company, analysts are divided. The stock has seen a good run-up with the rise in oil prices last year, but did not see a fall when these crude prices fell. That’s due to the company’s plan to achieve transmission volume of 130-132 mmscmd by FY25. “The stock has been even stronger due to optimism of higher transmission volumes. We believe that despite the recent strong gas consumption data, India’s medium-term gas demand outlook is weak and LT (low temperature) outlook is even weaker,” said a report by Kotak Institutional Securities. Added to that, its petchem business delivered losses for the fifth consecutive quarter in Q2. Its LPG business is expected to return to profitability in the second half of the current financial year but losses could also come back during the summers, worry analysts. “Despite weak profitability, GAIL’s further large capex in petchem has been a key worry,” says Kotak. Sharekhan however believes that GAIL can post a strong earnings recovery over FY23-26, across business segments supported by stabilising global LNG supplies and improving price environment for its commodity businesses. It identifies other triggers for the stock price too, like value unlocking. “GAIL is evaluating for monetization of city gas distribution CGD assets and the same helps to unlock value from its stake in GAIL Gas,” said Sharekhan. OMCs: Capacity expansions too far in the future Oil marketing companies like Indian Oil, HPCL and BPCL on other hand too are planning capacity expansions. But only HPCL’s is likely to see benefit of volume growth over FY24-FY26 due to the expansion of its Visakh refinery, and petchem expansion at subsidiary, HMEL Bhatinda. IOCL is implementing refinery and chemicals expansion projects, but its volume growth is likely to flow through after FY26. BPCL’s volume growth from petrochemical expansion at Bina and Kochi can be visible only after FY28. OMC stocks have been gaining momentum due to fall in crude oil prices, but most experts see prices inching up to $80/barrel on account of geopolitical tensions. Brokerages believe that a further rally from the current prices for these stocks is unlikely. “We acknowledge that a higher discount on Russian crude is not likely and that proximity to general elections will limit any near-term upside to marketing margins despite moderation in crude oil prices,” said a report by Bob Caps.

State-owned oil stocks have more juice left in the barrel

<ul><li>Standing firm on its decision, the Indian government has announced that its plans to ‘<keyword id="9302395" type="UNKNOWN" weightage="20" keywordseo="divest-bpcl">divest BPCL</keyword> is very much on’.</li><li>One of the reasons behind the government’s decision to go ahead with <keyword id="8358736" type="UNKNOWN" weightage="20" keywordseo="bpcl-divestment">BPCL divestment</keyword> could be the loss of revenue and the massive stimulus package further bleeding its reserves.</li><li>The company sells a fifth of all petroleum products sold in the country. </li></ul>The shares of state-owned fuel refiner <keyword id="156368" type="DOMAIN" weightage="20" keywordseo="Bharat-Petroleum-Corporation">Bharat Petroleum Corporation</keyword> (BPCL) were trading at over ₹500 a piece when the government announced that <a href="https://www.businessinsider.in/business/news/bpcl-divestment-opens-up-to-mixed-reactions-but-the-companys-shares-takes-a-hit/articleshow/72155044.cms">it will sell a little over half the company</a>. Analysts at Prabhudas Lilladher expected the government to make over ₹83,000 crore from the sale. Today, <keyword id="8228313" type="UNKNOWN" weightage="20" keywordseo="bpcl-shares">BPCL shares</keyword> are available at ₹329, they have lost 35% of their value in the last three months. However, that hasn’t stopped the government from going ahead with its plan to sell stake in the company this year because, cash crunch! <div type="Article" hostid="261" msid="76054599" title="Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes" mstype="2" mssubtype="0"></div> The government needs money to stimulate the economy and tax collections are likely to be down. Selling assets may be necessary. And that is why, the deadline for submitting bids has been extended to July 31. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2597879" data-url="https://flo.uri.sh/visualisation/2597879/embed"><script src="https://public.flourish.studio/resources/embed.js"></script></div>]]></cdata></div> When the price is right.. However, Pradhan noted that the divestment in BPCL will be done at an appropriate time. “We believe BPCL now presents deep value as the value of its investments and non-core assets accounts for nearly its entire value,” stated a report by Edelweiss research dated May 11, 2020. The company sells a fifth of all petroleum products sold in the country. The value of the core refining business makes BPCL even more valuable but the market is not willing to pay the price. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upside (from May 27) </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 525 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">68% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 390 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr></tbody></table> “Due to Covid-19, BPCL’s ongoing divestment is likely to be delayed to 2HFY21F or even FY22F. Also, given increased concerns on marketing, weak demand/margin, and likely reduced interest from NOCs (national oil companies) in the current scenario, we believe the likely valuations will be lower,” stated a Nomura report dated May 21, 2020. India needs money to revive the economy With economic growth expected to plummet in the months to come, the government is also bracing for a steep fall in tax the goods and services tax (GST) collections. According to the SBI Ecowrap report, the government will have a loss of INR 10.4 lakh crore in FY21. “When India had first imposed a lockdown, our GDP estimate was 2.6% and since then it has been progressively reduced to a negative 4.7%, with nominal GDP witnessing a contraction,” the report said. In addition to this, the ₹20 lakh crore stimulus package is also likely to hurt the government's coffers - some of which it has tried to make up for by hiking excise duty on petrol and diesel by up to ₹13 per litre. <a href="https://www.businessinsider.in/business/news/crude-oil-prices-didnt-fall-below-zero-futures-did-and-heres-what-it-means/articleshow/75264639.cms">Low crude oil prices</a> have helped the government shore up some money via high taxes to fund the COVID-19 relief measures. <div type="Article" hostid="261" msid="75571747" title="For every ₹100 spent on petrol and diesel in India, ₹70 goes towards taxes" mstype="2" mssubtype="0"></div> India’s fiscal deficit⁠— the difference between what the government earns and spends⁠— is estimated to be 5.5%, <a href="https://economictimes.indiatimes.com/news/economy/indicators/moodys-investors-service-sees-indias-economic-growth-at-zero-in-fy21/articleshow/75619459.cms">according to Moody’s</a>. The difference will have to come from either borrowing or sale of assets like the shares of BPCL. Government wants more private players in strategic sectors “Let me categorically assure investors and stakeholders, recently the Finance minister on her package announcement has categorically come out with a new policy approach on PSUs. For BPCL we have taken a decision prior to COVID-19 situation and we are very firm on our decision,” said Dharmendra Pradhan, Minister for Petroleum and Natural Gas in an interview with <a href="https://www.cnbctv18.com/energy/govt-wont-change-bpcl-divestment-strategy-says-dharmendra-pradhan-5999261.htm">CNBC-TV18</a>. This should come as no surprise, especially after Finance Minister Nirmala Sitharaman <a href="https://timesofindia.indiatimes.com/business/india-business/govt-signals-retreat-of-psus-even-across-strategic-sectors/articleshow/75795778.cms">said</a> that the government will go ahead with its divestment plans, and even in strategic sectors, public sector undertakings will be limited to a maximum of 4 companies, while the rest will be opened up to the private sector. Oil marketing is a sector that is currently a state monopoly, controlled by three government companies. SEE ALSO: <a href="https://www.businessinsider.in/business/news/govt-to-gain-rs-1-6-lakh-cr-this-fiscal-from-record-excise-duty-hike-on-petrol-diesel/articleshow/75567986.cms">India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel</a> <a href="https://www.businessinsider.in/business/corporates/news/crude-oil-price-crash-might-batter-these-significant-deals-that-could-drive-the-indian-economy/articleshow/75272856.cms">Crude oil crash might affect RIL-Aramco deal, BPCL divestment and much more</a> <a href="https://www.businessinsider.in/business/news/bpcl-divestment-opens-up-to-mixed-reactions-but-the-companys-shares-takes-a-hit/articleshow/72155044.cms">BPCL divestment opens up to mixed reactions, but the company’s shares takes a hit</a> <a href="https://www.businessinsider.in/india/news/how-much-tax-consumer-is-paying-on-petrol-and-diesel-in-india/articleshow/75571747.cms">For every ₹100 spent on petrol and diesel in India, ₹70 goes towards taxes</a>

India may have to sell BPCL shares for less than the best price⁠ as the government needs money

New Delhi, Feb 4 () The Oil Ministry has moved a cabinet note seeking approval for hiving off state-owned gas utility GAIL (India) Ltd's pipeline business into a separate entity for a possible sale to a strategic investor at a later date, sources privy to the development said.
 GAIL is India's biggest natural gas marketing and trading firm and owns more than 70 per cent of the country's 16,981-km pipeline network, giving it a stranglehold on the market.
 Users of natural gas have often complained about not 'fairly' getting access to GAIL's 12,160-km pipeline network to transport their fuel.
 Sources said to resolve the conflict arising out of the same entity owning the two jobs, bifurcating GAIL is being considered.
 GAIL's core business after the bifurcation would be the marketing of natural gas and petrochemical production. It will have to hire capacity on pipelines from the subsidiary and pay regulator approved traffics for the same.
 It will continue to execute the gas sales agreements it has already signed and will be responsible for the discharge of the obligation under purchase pacts including for import of LNG.
 The Ministry last month floated a note for consideration of the Union Cabinet for transferring the pipeline business into a 100 per cent subsidiary.
 The proposal involves separating the accounts of the pipeline division as well as transferring employees directly connected with the pipeline operations to the new subsidiary, they said adding a suitable name for the subsidiary is being mulled over.
 The Cabinet, they said, is likely to consider the proposal shortly.
 After the Cabinet approval, a consultant will be appointed to transfer the pipeline business into a separate subsidiary. This would take 8-10 months to accomplish.
 Sources said the pipeline subsidiary may be sold off to a strategic investor but the sale is not likely before 2022 as the thinking in the government is that the gas market will not be mature before that and state support would be needed for GAIL to accomplish building a national gas pipeline grid.
 The government had recently approved viability gap funding for a gas pipeline grid in the North-East which a consortium comprising GAIL and other state-owned firms will be executing.
 GAIL will continue to own the marketing business as also the stakes in liquefied natural gas (LNG) terminals after the split, they said.
 Previously, the government was considering transferring marketing business into a separate subsidiary for a sell-off at a later date but now a hive off of the pipeline business is being considered.
 GAIL has multiple long-term contracts to import gas in its liquid form (LNG) from countries such as the US and no strategic buyer would like to take the responsibility of those, particularly when the fuel is available at a cheaper price in the spot or current market, the sources said.
 They said it is now being considered that GAIL continues with the marketing business that would include all the sale contracts as also city gas retailing.
 Post-2022, the pipeline business can be sold to a strategic investor such as Canadian asset management company Brookfield that recently bought a 1,480-km pipeline owned by Mukesh Ambani's Reliance Industries (RIL).
 The sources said the strategic partner will operate the pipelines and give access on a non-discriminatory basis to any entity wanting to transport gas either from a natural gas field or an LNG import terminal to consumers.
 GAIL already keeps separate accounts for its gas pipeline and marketing businesses, making it easier to split them into two entities.
 By unbundling GAIL and opening the sector, the government hopes to increase gas use to 15 per cent of the energy mix by 2030 from current 6.2 per cent.
 When talk of splitting first started in January last year, Oil Minister Dharmendra Pradhan had stated that GAIL should focus on laying pipelines, suggesting hiving off the marketing business.
 Incorporated in August 1984 by spinning off the gas business of ONGC, GAIL owns and operates over 11,500-km of natural gas pipelines in the country. It sells around 60 per cent of natural gas in the country.
 The sources said the oil ministry has not been very happy with GAIL's performance in building the pipeline network. Besides, there is a possible conflict of interest in its role as an infrastructure provider and carrier.
 GAIL did not start executing the Rs 12,940 crore Jagdishpur-Haldia and Bokaro-Dhamra pipeline until the government agreed to give 40 per cent of the project cost as a grant from the budget. The pipeline takes the gas to Prime Minister Narendra Modi's constituency, Varanasi.
 Plans to split the company had been discussed more than a decade back too but these did not materialise.
 The sources said refiners Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) had in 2017 evinced interest in acquiring GAIL to expand their gas marketing business.
 GAIL also owns a petrochemical plant at Pata in Uttar Pradesh.
 The company had in the past resisted the split on grounds that it's gas marketing and transmission businesses operate at arm's length and hence do not need to be separated.
 GAIL's marketing business formed 76 per cent of its 2018-19 total sales and about 30 per cent pre-tax profit.
 The government has a 54.89 per cent stake in GAIL India. ANZ ANZ ANU
ANU

Oil Min moves Cabinet note for splitting GAIL; pipeline business may be sold later

<ul><li><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s <keyword id="6355199" type="COMPANY" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> is reportedly in talks to sell a 25% stake in its <keyword id="6394038" type="UNKNOWN" weightage="20" keywordseo="refinery">refinery</keyword> and petrochemicals unit to <keyword id="152170" type="COMPANY" weightage="20" keywordseo="Saudi-Aramco">Saudi Aramco</keyword>. </li><li>The deal with Aramco - dubbed the world’s most profitable company after it reported a net income of $111 billion last year (twice as much as Apple) - is expected to net $10 billion for Reliance. </li><li>The deal will allow Reliance to finance the expansion of its refinery in <keyword id="6361405" type="LOCATION" weightage="20" keywordseo="jamnagar">Jamnagar</keyword>, Gujarat. </li></ul>Mukesh Ambani’s Reliance Industries is reportedly in talks to sell a 25% stake in its refinery and petrochemicals unit to Saudi Aramco, the state-owned <keyword id="6359072" type="UNKNOWN" weightage="20" keywordseo="oil">oil</keyword> company of <keyword id="50996" type="LOCATION" weightage="20" keywordseo="Saudi-Arabia">Saudi Arabia</keyword>, according to a <a href="https://www.bloomberg.com/news/articles/2019-04-17/reliance-said-to-weigh-refinery-unit-stake-sale-to-aramco-adnoc">Bloomberg </a>report citing sources. The deal with Aramco - dubbed <a href="https://www.nytimes.com/2019/04/01/business/saudi-aramco-profit.html">the world’s most profitable company</a> after it reported a net income of $111 billion last year (twice as much as Apple) - is expected to net $10 billion for Reliance. Markets responded positively to the news, with Reliance's share price up by more than 2% at the close of trading yesterday. In fact, Hemang Jani, the Senior VP of Sharekhan, told ET that he expected a 12-14% upside for Reliance's shares, given the benefit of securing a deep-pocketed investor for one of it's core operations. However, discussions are still at an early stage, They follow <a href="https://www.theweek.in/news/biz-tech/2018/12/18/saudi-arabia-reliance-refinery-petrochem.html">a round of talks </a>in December between Ambani and Khalid al Falih, Saudi Arabia’s oil minister, over potential petrochemical and refinery investments in India. Interestingly, the latter also made it to the wedding of Ambani’s son Akash <a href="https://www.telegraphindia.com/business/saudi-oil-minister-on-second-india-visit/cid/1686508">last month</a>. The refinery and petrochemicals business is extremely important to Reliance’s bottom line, contributing <a href="https://www.livemint.com/companies/news/reliance-eyes-higher-valuation-for-refining-arm-in-likely-aramco-deal-1555500439610.html">three-quarters of its operating profit</a>. The deal makes sense for Reliance. “It is eyeing the expansion of its refinery in Jamnagar and wants to get another investor on board” says Deven Choksey, MD of K R Choksey Securities. “Reliance wants to increase the capacity of the refinery to 100 million tonnes” adds Choksey. “Hence, the investment from Aramco will strengthen its balance sheet, divide the risk and fund the addition of a new plant at the refinery”. Furthermore, the conglomerate will likely use the proceeds from the deal to pay down its increasing debt obligations, which have ballooned <a href="https://www.bloomberg.com/news/articles/2019-04-17/reliance-said-to-weigh-refinery-unit-stake-sale-to-aramco-adnoc">to $32 billion</a> by the end of 2018, following investments in its telecommunications business, Jio. Aramco has also been eyeing the Indian market for a while now and the deal with Reliance will give it a stronger presence in the country’s downstream energy sector. However, that isn’t the only investment it is weighing. Last July, Saudi Aramco and ADNOC, Abu Dhabi’s state oil firm, decided to join hands <a href="https://www.businessinsider.in/saudi-arabia-has-big-plans-for-indias-energy-sector/articleshow/66236777.cms">on a $44 billion refinery project </a>in <keyword id="94802" type="LOCATION" weightage="20" keywordseo="Ratnagiri">Ratnagiri</keyword>, which is in the Indian state of Maharashtra. The two state-backed oil producers are taking a 50% stake in the Ratnagiri project, which is expected to produce 1.2 million barrels per day, while the other half will be owned by a consortium of Indian refiners such as IOC and BPCL. Sources say that Aramco <a href="https://www.thehindubusinessline.com/companies/aramco-will-stay-committed-to-ratnagiri-project/article26866612.ece">is still committed to the Ratnagiri project,</a> regardless of the outcome of deal talks with Reliance. SEE ALSO: <a href="https://www.businessinsider.in/aramco-heres-everything-you-need-to-know-about-the-worlds-most-profitable-companys-debut-bond/articleshow/68814827.cms">Aramco: Here's everything you need to know about the world's most profitable company's debut bond</a> <a href="https://www.businessinsider.in/mukesh-ambani-versus-amazon-walmart-in-india/articleshow/68918092.cms">Mukesh Ambani is clearing the way for the launch of his e-commerce business</a>

Mukesh Ambani might net billions by selling a stake in his refinery business to the ‘world’s most profitable company’

<ul><li><keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> companies’ December-quarter revenue is likely to grow 16% over last year, says a report by Phillip Capital.</li><li>Analysts expect it to be a tepid quarter for most sectors, including infrastructure, specialty chemicals, IT and metals.</li><li>However, analysts say banks will continue to outperform with strong tailwinds for the sector despite global challenges.</li><li>NBFCs, FMCG and autos are likely to report moderate to robust growth in the quarter.</li></ul>Yet another earnings season has begun, as always, with IT services companies reporting a mixed set of numbers. That pretty much sets the tone of the quarter as strategists expect Nifty50 companies to report on-year revenue growth of 16% and a 10% growth in net profit. Analysts expect it to be a tepid quarter for most sectors, including infrastructure, specialty chemicals, IT and metals. On the other hand, sectors like banks, NBFCs, FMCG and autos are likely to report moderate to robust growth in the quarter. “Q3FY23 is expected to be a soft quarter along with slight margin improvement. We will be watching for management commentary on India and global demand outlook,” says a report by Phillip Capital. “We are of the view that the financial sector will continue to perform while consumption space will remain under pressure. Investment space is expected to perform well led by public and private capex expansion.” Seasonally weak quarter for IT, Reliance to have a strong quarter <a href="https://www.businessinsider.in/business/corporates/news/infosys-results-q3-fy23-infosys-raises-revenue-guidance-for-fy23-to-16-16-5/articleshow/96941824.cms">TCS has kicked off </a>the earnings seasons with lower-than-estimated growth – it reported a 3.98% sequential growth in net profit at ₹10,846 crore in the December quarter. On the other hand, Infosys beat analysts’ expectations with a 20.2% y-o-y increase in its revenue to ₹38,318 crore in Q3 and raised its full-year revenue growth guidance. <a href="https://www.businessinsider.in/business/corporates/news/hcl-tech-lowers-revenue-guidance-for-fy23-to-13-5-14-q3-revenue-and-profit-growth-beat-expectations/articleshow/96944379.cms">HCL Technologies </a>reported a 19.6% year-on-year growth in its topline to ₹26,700 crore, while its net profit grew 19% YoY to ₹4,096 crore, beating analyst <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/hcl-tech-to-announce-q3-results-on-thursday-heres-a-preview-of-what-to-expect/articleshow/96915899.cms">expectations</a> in both the areas. Analysts had expected muted revenue growth from the IT services sector in the third quarter on account of it being a seasonally weak quarter. “The December quarter is a seasonally weak quarter mainly due to higher furloughs. In addition, macro challenges are leading to weakness in mortgage, luxury retail, high-tech and slowdown in 5G capex,” said a report by IDBI Capital. Furlough is a leave of absence from work for which the employee is not paid. Meanwhile, the oil-to-telecom conglomerate Reliance Industries is expected to announce a robust quarter due to strong recovery in the retail segment along with decent uptick in other segments. “We expect Reliance Industries Limited’s (RIL) consolidated PAT to increase by 27% q-o-q to ₹17,316 crore due to improvement in standalone earnings on better refining/petchem margin, decent growth at Jio and strong recovery for retail business,” said a report by Sharekhan. Banks to see strong December quarter on higher loan rates Net interest margin (NIM) will see sequential improvement as lending rates have risen in line with RBI’s repo rate increases, say analysts. Since May last year, <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-35-bps-taking-rates-to-a-high-of-6-25/articleshow/96045841.cms">RBI has hiked interest rates by 225 basis points so far</a>. While banks benefited from rate hikes in Q2, analysts see more room for a <a href="https://www.businessinsider.in/finance/banks/news/sbi-hdfc-bank-axis-bank-among-other-private-and-public-bank-earnings-could-see-a-further-ramp-up-in-q3-2022/articleshow/96768992.cms">further ramp up in Q3 </a>as well. “We believe business momentum for banks is expected to remain strong, led by strong tailwinds in the sector and is likely to sustain over the medium term as higher inflation gets tamed, revival of the capex cycle, higher consumption, and increased business confidence,” said a report by Sharekhan. “Strong asset quality outlook, additional provision buffers, higher PCR (provision coverage ratio) levels, increased capital buffers, and core credit cost undershooting augur well for the sector,” added the report. FMCG may get a boost from price hikes The fast-moving consumer goods (FMCG) sector is expected to pass the quarter with flying colours on the back of price hikes amid elevated inflation. “Most of the consumer companies are expected to report decent revenue growth; however, a majority of revenue growth will be driven via price hikes, which companies have taken in past quarters to combat unprecedented raw material inflation. Rural demand continues to remain muted. Delay in winter to impact winter portfolio,” said Phillip Capital. “We expect our FMCG universe to deliver sales/ EBITDA/ PAT growth of 11%/ 7%/ 8% YoY in 3QFY23. Sustained inflation impacted both volume offtake and margins,” said a report by Antique Stock Broking. ITC is seen reporting strong growth across businesses with the cigarette business registering a double-digit volume growth. Detergents will likely drive Hindustan Unilever's performance, with margins recovering q-on-q due to a moderation in palm oil - a key input. Autos to reap benefits of festive quarter Despite the near-term challenges of semiconductor chip shortage and geopolitical challenges, analysts are optimistic about autos based on high demand for passenger and commercial vehicles. “Q3FY2023 is expected to be a strong quarter with a 20.4% y-o-y increase in revenue. Margins are expected to show improvement on a q-o-q basis, led by operating leverage benefits, cost rationalisation, and softening commodity prices,” said a report by Sharekhan. Further, strong demand, easing supply constraints, and falling commodity prices are likely to provide relief to automobile original equipment manufacturers (OEMs) and ancillary companies. Ferrous players expected to outperform non-ferrous companies Ferrous players – Tata Steel and JSW Steel – are expected to post better Q3FY23 earnings compared to non-ferrous companies, which include Hindustan Zinc, Hindalco Industries and Vedanta. “For Q3FY23, we expect steel producers to post higher EBITDA QoQ primarily due to sharp fall in coking coal and iron ore price offsetting decline in sales volume sequentially,” said a report by Centrum broking firm. After a challenging first half of the financial year, the domestic steel industry should witness a better second half, says Elara Capital. “The recent removal of exports duty and the likely rise in domestic demand led by the start of the busy season should lead to healthy volume for domestic steelmakers,” the report said. For non-ferrous companies, there are expectations of a marginal fall in quarterly operating profits due to fall in LME (London Metal Exchange) aluminium and zinc prices. Cement sector: Easing input costs in 2H FY23 to drive earnings Analysts say the cement industry is seeing a healthy demand environment with improving cement process and decline in pet coke and coal prices. “Weighted average EBITDA/tonne is expected to recover sharply from a multi-quarter low to ₹765 owing to q-o-q improvement in cement prices, higher demand, and easing power and fuel costs. Hence, operating profits and net profits are expected to rise by 50.9% q-o-q and 77.8% y-o-y, respectively,” said a report by Sharekhan providing estimates for cement companies. The report said that it expects cement demand to remain healthy in the second half of FY23 alongside improving operating margins. Further, analysts will eye commentaries on ongoing and future capex plans. BPCL, HPCL, IOC to benefit from falling oil prices Oil marketing companies – BPCL, HPCL and Indian Oil Corporation – will likely benefit from Brent crude oil prices being on a downtrend since the last couple of months due to a lockdown in China, one of the biggest consumers of oil. “We expect OMCs’ operating performance would improve on sequential basis in Q3FY23 as marketing under recoveries would reduce sharply supported by a ~$11/bbl q-o-q decline in crude oil price while there has been no change in the retail petrol/diesel price,” said a report by Sharekhan. The report added that it expects all three OMCs to report positive EBITDA – Indian Oil (₹ 5,836 crore), BPCL (₹3,112 crore) and HPCL (₹629 crore) in Q3FY23 compared to negative EBITDA of ₹8,841 crore, ₹4,148 crore and ₹1,859 crore in Q2FY23, respectively. Under recoveries is the gap between the cost and the selling price of fuel. If the selling price is lower than the cost price, higher the under recoveries. Thus, a fall in crude oil prices benefits these companies at a time when there has been no hikes in petrol and diesel prices. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/hcl-tech-lowers-revenue-guidance-for-fy23-to-13-5-14-q3-revenue-and-profit-growth-beat-expectations/articleshow/96944379.cms">HCL Tech lowers revenue guidance for FY23 to 13.5-14%, Q3 revenue and profit growth beat expectations</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/infosys-results-q3-fy23-infosys-raises-revenue-guidance-for-fy23-to-16-16-5/articleshow/96941824.cms">Infosys raises revenue guidance for FY23 to 16-16.5%, revenue growth beats analyst expectations</a>

Nifty50 set to clock 10% increase in profit in Q3; banks likely to outperform

<ul><li><keyword id="4393078" type="General" weightage="20" keywordseo="ola-electric" source="Orion">Ola Electric</keyword> has invested in an Israeli battery technology company StoreDot.</li><li>The company has claimed that this is the first of several global strategic investments it plans to make.</li><li><keyword id="6354720" type="General" weightage="20" keywordseo="ola" source="Orion">Ola</keyword> Electric was set up in 2017 to run electric taxis on Ola, a cab hailing company that competes with Uber.</li></ul>Ola Electric — the electric vehicle (EV) arm of ANI Technologies — on Monday announced that it has invested in an Israeli battery technology company StoreDot, a company that makes extreme fast charging (XFC) technology for emobility. The company has claimed that this is the first of several global strategic investments it plans to make. This will be a part of Ola Electric’s plan to ramp up its core research and development (R&amp;D) in advanced cell chemistry and manufacturing as well as other battery technologies and new energy systems. As a part of the deal, Ola Electric will have access to StoreDot’s state of the art XFC battery technology that charges a battery from 0 to 100% in just 5 minutes. The Indian company — <a href="https://www.businessinsider.in/business/startups/news/ola-electric-raises-another-200-million-this-time-at-a-valuation-of-5-billion/articleshow/89088739.cms">valued at $5 billion</a> in January — will have the exclusive rights to manufacture batteries integrating StoreDot’s fast charge technology in India. The company also plans to set up a gigafactory for manufacturing cells and meet the demand generated by Ola Future Factory. The company claims to have already submitted a bid under the Indian government’s production linked incentive (PLI) scheme for Advanced Chemistry Cell Battery Storage. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[<blockquote class="twitter-tweet">We’re investing big into future cell tech. Excited to announce a strategic partnership with StoreDot of Israel. Will be working together to soon bring to market and manufacture its pioneering extreme fast charging cell tech, capable of charging 0-100% in 5 mins in India. (1/2)&mdash; Bhavish Aggarwal (@bhash) <a href="https://twitter.com/bhash/status/1505829650383007744?ref_src=twsrc%5Etfw">March 21, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>]]></cdata></div> “The future of EVs lies in better, faster and high energy density batteries, capable of rapid charging and delivering higher range. We are increasing our investments in core cell and battery technologies and ramping up our in-house capabilities and global talent hiring, as well as partnering with global companies doing cutting edge work in this field,” Bhavish Aggarwal, founder and chief executive officer (CEO) of Ola, said. Ola Electric was set up in 2017 to run electric taxis on Ola, a cab hailing company that competes with Uber. However, the company decided to pivot into electric vehicle (EV) manufacturing and set up the world’s largest electric two-wheeler factory in Tamil Nadu. The said factory is entirely run by women. The company is currently developing its electric scooter, which competes with the likes of Ather 450X, TVS iQube and the new Bajaj Chetak. It has raised over $800 million to date, <a href="https://www.crunchbase.com/organization/ola-electric/investor_financials">according</a> to business intelligence platform Crunchbase. The company counts Tiger Global, SoftBank, Matrix and others. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/adani-group-ioc-bpcl-hpcl-reliance-hdfc-and-other-hot-stocks-on-march-21/slidelist/90344098.cms">Adani group, IOC, BPCL, HPCL, Reliance, HDFC and other hot stocks on March 21</a> <a href="https://www.businessinsider.in/investment/news/india-is-working-on-crypto-classification-under-gst-law/articleshow/90344895.cms" data-type="tilCustomLink">India is working on crypto classification under GST law</a> <a href="https://www.businessinsider.in/investment/news/crypto-tax-in-india-kicks-in-from-april-heres-all-you-need-to-know/articleshow/90344479.cms">India’s cryptocurrency tax kicks in from April – here’s what investors need to know</a>

Ola Electric just invested in a company that can fully charge its electric scooters in five minutes

New Delhi, Feb 2 () ONGC, IOC and other oil PSUs will invest over Rs 98,521 crore in the coming fiscal starting April 1 in exploring for oil and gas, refineries, petrochemicals and laying pipelines to meet needs of the world's fastest-growing energy consuming nation.
 The investment proposed in 2020-21 is almost 4 per cent higher than Rs 94,974 crore spending by the state-owned oil firms in the current fiscal year that ends on March 31, according to Budget 2020-21 documents.
 Oil and Natural Gas Corp (ONGC) leads the pack with a 19 per cent rise in its capital spending at Rs 32,501 crore. The company is investing in finding new reserves of oil and gas and bringing to production discoveries it has already made. It is developing discoveries on both east and west coast of the country.
 The top oil producer's overseas arm, ONGC Videsh Ltd (OVL) will invest almost 10 per cent more at Rs 7,235 crore in oil and gas operations abroad.
 Indian Oil Corp (IOC), the country's top oil refiner, will see a 17.4 per cent rise in spending to Rs 26,233 crore with the bulk of it in expansion and upgrade of its seven refineries that produce fuel.
 IOC will also see investment in petrochemical business almost double to Rs 3,387.5 crore while its exploration spends quadruples to Rs 2,150 crore.
 Privatisation-bound Bharat Petroleum Corp Ltd (BPCL) has proposed a 14 per cent higher capital spending at Rs 9,000 crore, two-third of which will be in its core refining business.
 Gas utility GAIL India Ltd will not see any major increase in its investments at Rs 5,412 crore as most of its pipeline grid expansion projects are nearing completion.
 Hindustan Petroleum Corp Ltd (HPCL), a subsidiary of ONGC, will invest Rs 11,500 crore in FY21, the same as the previous year.
 Oil India Ltd, the nation's second-largest oil producer, will invest Rs 3,877 crore next year as compared to Rs 3,675 crore in current fiscal.
 In her second budget, Finance Minister Nirmala Sitharaman had on Saturday laid down plans for expansion of national natural gas pipeline network to 27,000 km from the present 16,200 km and pricing reforms as the government looks at boosting the use of environment-friendly fuel.
 The government has set a target of raising the share of natural gas in primary energy basket to 15 per cent by 2030 from current 6.2 per cent. Connecting gas sources to consumption hubs is key to achieving this.
 Presently, most of the gas pipelines are concentrated in the western and northern part of the country with a few lines in the east and south.
 "To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions," she had said.
 Presently, the price of natural gas produced domestically is fixed by a formula that averages out rates in gas surplus nations such as Russia and the US.
 "Further, it is proposed to expand the national gas grid from the present 16,200 km to 27,000 km," she said without giving a timeline. ANZ MKJ

You Searched For "BPCL core business" and got 8 results

BPCL planning Rs 1.7 lakh crore spend to expand core business, new energy foray over next five years

PTI

State-owned oil stocks have more juice left in the barrel

Katya Naidu

India may have to sell BPCL shares for less than the best price⁠ as the government needs money

Rounak Jain

Oil Min moves Cabinet note for splitting GAIL; pipeline business may be sold later

PTI

Mukesh Ambani might net billions by selling a stake in his refinery business to the ‘world’s most profitable company’

Dilsher Dhillon

Nifty50 set to clock 10% increase in profit in Q3; banks likely to outperform

Bhakti Makwana

Ola Electric just invested in a company that can fully charge its electric scooters in five minutes

Kritti Bhalla

ONGC, IOC, other oil PSUs to invest Rs 98,521 cr in FY21

PTI