India’s expanding its oil stocks to avoid external price and supply shocks in the future. On June 27, the Narendra Modi government announced a plan to build two new caves full of strategic petroleum reserves (SPRs) to maintain the country’s supplies for up to 12 days during exigencies.
One of the caves will be built at Chandikhol in Odisha to store up to 4.4 million tonnes of crude oil; the other will be a 2.5 million tonne facility at Padur in Karnataka. This is besides the three SPRs India already has in Visakhapatnam, Mangaluru, and Padur. Together, these three sites have a total capacity of 5.33 million tonnes.
India imports about 80% of its fuel needs, which makes it vulnerable to external instability. As a result, it has been working on a long-term plan to tackle the global vagaries instead of merely reacting every time. Read More