India bullish on strategic oil reserve plan


India bullish on strategic oil reserve plan

India has decided to fast track its plan to augment its strategic oil reserves facility with 90-100 days stock to shield itself from supply disruptions coming from perennial political risk in the prime oil supplying countries in the Middle East and Africa.

The reserve will also help the country cope with demand spike and price rise in the event of border skirmishes and war like situation that played out with Pakistan recently.

Sources in the Oil Ministry said that apart from the operational 5.33 million tonnes (mt) underground strategic reserve facility at Visakhapatnam, Mangalore and Padur, another 6.5 mt facility is coming up at Padur in Karnataka and Chandikhole in Odisha.

Work on two more facilities at Bikaner in Rajasthan and Rajkot in Gujarat would be initiated soon. When complete, these would hold enough oil to meet domestic requirements for over a month. Read More

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