India is seeking $1.5 billion of investments from global oil producers and traders to build additional emergency crude reserves that will act as a buffer against volatility in oil prices.
The plan is to build underground caverns that can hold a combined 6.5 million tons of crude at two locations, Indian Strategic Petroleum Reserves Ltd. Chief Executive Officer H.P.S. Ahuja said. The state-run ISPRL will collaborate with private entities, who will invest in the project, he said.
Getting investors to build the storage facilities will lessen the strain on state finances and help Prime Minister Narendra Modi’s government meet its budget goals, while expanding strategic petroleum reserves to shield the economy from oil-price volatility.
India, which meets almost 85 percent of its crude needs through imports, this month cut taxes on fuel sales to lower the burden of high oil prices on consumers. Read More
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