In a bid to insulate the country from volatility in global oil market, the Cabinet approved construction of two more strategic petroleum reserves with aggregate capacity of 6.5 million tonnes (MT) at Chandikhol in Odisha and Padur in Karnataka.
“Cabinet has approved two additional storage facilities with capacity aggregating 6.5 MT at Chandikhol of 4 MT and at Padur of 2.5 MT, the creation of which will help in significantly strengthening the country’s strategic oil reserves,” Railway Minister Piyush Goyal announced.
“We are going to explore the PPP (public-private partnership) mode for execution of these underground caverns for which potential investors will be approached,” Goyal said, adding that the cabinet has only accorded in-principle approval, while costs of the advanced design and engineering required would be worked out.
Under phase-1 of the strategic petroleum reserve (SPR) programme, the government has built crude oil storage facilities with total capacity of 5.33 MT, equivalent to around 39 million barrels, at three locations — Visakhapatnam, Mangalore and Padur.
A Petroleum Ministry release said the completed phase-I of the SPR programme has estimated supplies of around 10 days of India’s crude requirement. “Cabinet’s approval for establishing additional 6.5 MT strategic petroleum reserve facilities will provide an additional supply of about 12 days,” it said.
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