Centre allocates Rs 4,948 cr for filling strategic oil reserves
1 April 2015 5:40 AM IST
India, which is 79% dependent on imports to meet its crude oil needs, is building emergency stockpiles with millions of barrels of crude that mirror the reserves that the US and its western allies amassed after the first oil crisis of 1973 to 1974.
Underground storages are being built at Visakhapatnam, Mangalore and Padur to store about 5.33 million tonnes (28 million barrels) of crude oil. This is enough to meet nation’s oil requirement for 11 days.
Telecom and IT Minister Ravi Shankar Prasad said, “Rs 4,948 crore allocation for Gross Budgetary Support (GBS) to the scheme for the Indian Strategic Storage Programme for storage of crude oil by Indian Strategic Petroleum Reserves Ltd (ISPRL) as been approved.” This money would be used to buy crude to fill up the just completed Vizag storages.
The Indian Oil Corp has already bought two ship loads of crude to fill this storage and the Cabinet sanction would allow payments to be made for the purchase. Visakhapatnam facility would have the capacity to store 1.33 million tonnes of oil in underground rock caverns. Huge underground cavities almost ten storey tall and approximately 3.3 km long are being built.
Mangalore’s facility with a capacity of 1.55 million tonnes will be mechanically completed by June 2015.
Underground storages are being built at Visakhapatnam, Mangalore and Padur to store about 5.33 million tonnes (28 million barrels) of crude oil. This is enough to meet nation’s oil requirement for 11 days.
Telecom and IT Minister Ravi Shankar Prasad said, “Rs 4,948 crore allocation for Gross Budgetary Support (GBS) to the scheme for the Indian Strategic Storage Programme for storage of crude oil by Indian Strategic Petroleum Reserves Ltd (ISPRL) as been approved.” This money would be used to buy crude to fill up the just completed Vizag storages.
The Indian Oil Corp has already bought two ship loads of crude to fill this storage and the Cabinet sanction would allow payments to be made for the purchase. Visakhapatnam facility would have the capacity to store 1.33 million tonnes of oil in underground rock caverns. Huge underground cavities almost ten storey tall and approximately 3.3 km long are being built.
Mangalore’s facility with a capacity of 1.55 million tonnes will be mechanically completed by June 2015.
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