ONGC's Rs 78,000 crore investment seen as credit negative: Moody's

Moody's said investments will lead to upfront increase in leverage and involve long gestation period

Ratings agency Moody's sees Oil and Natural Gas Corporation (ONGC) planned Rs 78,000 crore investment in Andhra Pradesh as credit negative in the backdrop of falling gas prices, long gestation period of such investments and expected increase in leverage. 

On January 27, Petroleum Minister Dharmendra Pradhan said ONGC, amongst other oil public sector utilities, will invest Rs 78,000 crore in Andhra Pradesh in the development of oil and gas discoveries.

"Of the total investment, around Rs 10,000 crore ($1.5 billion) will be spent on on-shore blocks with the balance Rs 68,000 crore ($10 billion) spent on off-shore assets in the