Sluggish participation by foreign companies lowers oil revenue estimates

The budget estimates revenue collection from the Petroleum sector at Rs 14,922 crore

A sluggish participation of foreign companies in exploration and production (E&P) so far has prompted the government to moderate its revenue collection estimates from the petroleum sector in FY25 (2024-25), officials said.

Under the petroleum head, the interim Budget has listed Budgetary Estimates (BE) of Rs 15,933 crore non-tax revenue collection in FY25. This is Rs 1,011 crore more than the Revised Estimates (RE) of Rs 14,922 crore for FY24.

However, the latest figure points to an overall downward trend. BE FY25 is as much as 38 per cent lower than what the government had initially hoped to get in