State oil companies have planned to start with more than around 500 projects as soon as possible. The total worth of this project would be around Rs 43,000 crore.
State firms have been after the plans to execute these demands of project where the debt has increased and squezed out the flow of cash at refiners.
The low prices of oil, have sharply cut off the income at upstream firms.Executive said that there are numerous challenges that they are facing in the project execution. Just being financially strong and spending lot of money would not serve the purpose. All of the contracts of the project involve multiple contractors whose financial and the ability of execution have slowed down because of the current situation of coronavirus.
At a state oil firm one of the officers said that payment cannot be made prior to the completion of the job. There are total of 196 projects of Indian Oil Corp, 168 of Bharat Petroleum Corp Ltd, 57 of Hindustan Petroleum Corp Ltd, 32 of Gail India Ltd and 26 of Oil and Natural Gas Corp Ltd.
The current oil projects are very much complex and need to have global supply chains of expertise and equipment.Because of the current situation, there are high chances that most of the oil and gas projects can be delayed this year.