Parliament Panel Queries Oil Sector Capex Amid Output Decline
A parliamentary committee has expressed concern over rising capital expenditure in India's oil and gas sector despite declining domestic crude oil production. The committee noted that while petroleum and natural gas public sector undertakings' (PSUs) capital expenditure rose from ₹1.3 lakh crore in 2020-21 to a projected ₹1.7 lakh crore in 2024-25, domestic crude oil output is expected to decline to 28.7 million metric tonnes (MMT) in 2024-25 from 34.2 MMT in 2018-19.
The committee asked the petroleum ministry to submit a detailed report explaining how recent exploration reforms and newly awarded blocks will help raise production. It noted that higher investments should be backed by clear performance benchmarks, periodic evaluation, and accountability mechanisms.