Bhubaneswar: The Union Cabinet on Wednesday approved the establishment of two additional Strategic Petroleum Reserves (SPR) of 6.5 million metric tonne (MMT) at Chandikhol in Odisha and Padur in Karnataka, said a Press Information of Bureau (PIB) release.
The SPR facilities at Chandikhol and Padur will be underground rock caverns and will have capacities of 4 MMT and 2.5 MMT respectively.
The construction phase of the SPRs at both the places is likely to generate significant direct and indirect employment opportunities in the states of Odisha and Karnataka.
This was decided in the Union Cabinet meeting, chaired by Prime Minister Narendra Modi.
The government had announced the setting up of two additional SPRs during the budget session for 2017-18.
The in principle approval is to take up the project under public private participation (PPP) model to reduce budgetary support of the Government of India. The terms and conditions of such participation would be determined by the Minister of P & NG in consultation with the Ministry of Finance after conducting road shows to elicit requirements of the market, including prospective investors.
ISPRL has already constructed underground rock caverns for storage of 5.33MMT of crude oil at three locations, viz. Vishakhapatnam (1.33 MMT), Mangalore (1.5 MMT) and Padur (2.5 MMT).
The total 5.33 MMT capacity under Phase-I of the SPR programme is currently estimated to supply approximately 10 days of India’s crude requirement according to the consumption data for FY2016-17.
Cabinet’s approval for establishing additional 6.5 MMT Strategic Petroleum Reserve facilities will provide an additional supply of about 12 days and is expected to augment India’s energy security.
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