Gail India, a Maharatna PSU, is likely to spend 8% less in capex in 2013-14 vis-à-vis its previous year spending. Gail India had spent Rs. 5,942 crore in capex in 2012-13 and in the current year it may not be able to spend more than Rs. 5,482 crore. It may be recalled here that the Planning Commission had mandated Gail India a capex budget of Rs.7,512 crore for 2013-14. Further, the company has lowered its capex estimate for 2014-15 to Rs.3105 crore.
Gail India had earmarked Rs. 2,017 crore for pursuing suitable M&A opportunities abroad during 2013-14 against which it may be able to spend only Rs. 592 crore. While the gas pipeline projects are expected to entail a total capex of just about Rs.869 crore during the year as against earmarked sum of Rs.1,776 crore, E&P segment may entail an expenditure of Rs 464 crore as against earlier estimation of R.s 518 crore. Gail India may spend just Rs. 1,249 crore on Pata petrochemical complex where the Company is doubling the capacity while the Company had projected to spend Rs. 3,000 crroe on the project earlier.
