CCEA clears 5m-tonne strategic oil reserve
The Cabinet Committee on Economic Affairs (CCEA) on Friday approved building 5m tonnes of strategic crude oil reserves at an estimated cost of Rs 11,267 crore through OIDB cess.
By TNN |
NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Friday approved building 5m tonnes of strategic crude oil reserves at an estimated cost of Rs 11,267 crore through OIDB cess.
The strategic storage facilities proposed to be created to take care of India���s energy security concerns. The storages will be built over 9 years and operating the stockpile will cost about Rs 90 crore per annum, defence minister Pranab Mukherjee told reporters after the CCEA meeting chaired by prime minister Manmohan Singh.
The facilities will be built at Mangalore and Vizag by Indian Strategic Petroleum Reserves, a subsidiary of Oil Industry Development Board (OIDB). ISPRL will implement and manage the strategic crude oil storages. State-run refiner, Indian Oil (IOC) was to float a special purpose vehicle���ISPRL���for building the reserves, but the CCEA has now decided that equity held by IOC in the special purpose vehicle will be transferred to OIDB.
The project will enhance the energy security of the country particularly during short term oil disruptions. India imports 73% of its crude oil requirement and spent some Rs 83,000 crore in ���04-05 on crude oil imports. The strategic reserves are envisaged as an insurance against any disruption in supplies.
The strategic storage facilities proposed to be created to take care of India���s energy security concerns. The storages will be built over 9 years and operating the stockpile will cost about Rs 90 crore per annum, defence minister Pranab Mukherjee told reporters after the CCEA meeting chaired by prime minister Manmohan Singh.
The facilities will be built at Mangalore and Vizag by Indian Strategic Petroleum Reserves, a subsidiary of Oil Industry Development Board (OIDB). ISPRL will implement and manage the strategic crude oil storages. State-run refiner, Indian Oil (IOC) was to float a special purpose vehicle���ISPRL���for building the reserves, but the CCEA has now decided that equity held by IOC in the special purpose vehicle will be transferred to OIDB.
The project will enhance the energy security of the country particularly during short term oil disruptions. India imports 73% of its crude oil requirement and spent some Rs 83,000 crore in ���04-05 on crude oil imports. The strategic reserves are envisaged as an insurance against any disruption in supplies.
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