ONGC to invest Rs 138 Bn in new projects

13 Aug 2024 CW Team

In a strategic move to enhance the production of natural gas, the Ministry of Petroleum and Natural Gas (MOP&NG) has notified a revised pricing policy that will see natural gas from new wells or well interventions in nominated fields of ONGC and Oil India Limited being priced at a 20% premium over the administered price mechanism (APM). This effectively sets the price at 12 %of the Indian Crude basket price.

Under this new guideline, the Petroleum Planning and Analysis Cell (PPAC) has outlined that the APM Price was previously pegged at 10 %of the Indian Crude basket price on a monthly basis. The implementation of this premium pricing is anticipated to render gas development projects in challenging areas viable, areas which are often capital and technology-intensive.

ONGC has responded to this policy update by approving two major projects totaling an investment of approximately Rs 138 billion. The first, the Daman Upside Development project in the Mumbai High field, involves a cost of about Rs 78 billion and is already underway. It is expected to reach a peak production of around 5 million standard cubic meters per day (MMSCMD).

Furthermore, the ONGC Board has sanctioned the Integrated Development of 4 Contract areas under the Discovered Small Fields (DSF-II) at an estimated project cost of Rs 60 billion. This project also benefits from pricing and marketing freedom under the DSF Policy and aims to hit a peak production of approximately 4 MMSCMD. The execution of this project has already been initiated. This policy shift aligns with India's ambitious target of increasing the share of natural gas in the national energy mix from the current 6 %to 15 %by the year 2030, supporting the country's broader energy and environmental goals.

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..