Make in India: ONGC awards lump sum turnkey projects over Rs 10,000 crores to domestic vendors
Dated : 06 August 2019 04:22:00 PM
ONGC has stepped up its drive for localization of procurement to promote Make in India campaign of the government. ONGC has registered a 6 per cent growth in the material purchase from domestic vendors in fiscal 2018-19 over 2017-18. Lump sum turnkey (LSTK) projects worth over Rs 10,000 crores have been awarded to domestic vendors, logging a growth of 12.71 per cent.
Currently, the domestic content in ONGC’s works and projects is around 70 per cent. This procurement policy has resulted in the saving of precious foreign exchange. This approach has also catalyzed the domestic E&P industry to gain strength and export goods worth USD 1.5 million in E&P oil & gas industry.
ONGC is a pioneer in the initiative of Import Substitution. The national oil company’s Indigenization drive began a number of decades earlier, to develop Indian vendors to supply critical oil-field goods and services, to reduce dependence on imports when national foreign exchange position was precarious. ONGC has developed a number of Indian vendors through its indigenization effort. Some of these developed vendors are now international players. The indigenization effort of ONGC, commonly carried out thought its INDEG group, is fuelling the government’s ‘Make in India’ Campaign.
The Ministry of Petroleum and Natural Gas (MoPNG) constituted a Steering Committee in October 2014 to roll out the “Make in India” campaign in the oil and gas industry. Accordingly, ONGC has taken up the INDEG-Make in India aggressively in the last three years.
Further, to promote entrepreneurship in the young Indian minds, energy Maharatna ONGC launched Rs 100 crore Start-up funds on its 60th foundation day on 14 August 2016. This initiative, launched as ‘ONGC Start-up’, is in line with the Government of India’s mission ‘Start-up India’. This is also ONGC’s one of the vital initiative that comes under its flagship program, INDEG-Make in India.