Thursday, April 15, 2021
Home News Reports Strategic Petroleum Reserve - Big Move by Modi Sarkaar

Strategic Petroleum Reserve – Big Move by Modi Sarkaar

The Modi government has been going through turbulent times with respect to its PR, mainly due to its mismanagement in communication of the Land Acquisition Bill. However, there are other critical decisions that are getting drowned in this mayhem. Topic such as strategic petroleum reserve (SPR) is not sexy for a discussion on prime-time news show. However, critical steps have been taken by the government that shows that the long term is indeed being taken care of.

India imports nearly two-thirds of its oil requirements and this is expected to increase to approx. 80% by 2020. It has been one of the biggest reasons for increase in India’s deficit. With the falling crude prices since last year, the onus was on the government to make maximum use of the opportunity.  The government allocated Rs 4,948 crore to upgrade India’s strategic petroleum reserves (SPR) to cover itself from any crises.

Every country plans for contingencies and India too initiated the strategic crude oil reserve in 2003. Three facilities are being developed, in the first phase. These three facilities would be enough to store less than two weeks (11 – 13 days) of India’s oil requirements:

Mangalore, Karnataka – 1.5 million metric tonnes

Padur (near Mangalore), Karnataka – 2.5 million metric tonnes

Vishakhapatnam, Andhra Pradesh – 1.33 million metric tonnes

Only the Vishakhapatnam facility is operational, as of date and the other two are expected to be ready by October 2015.

In addition, the government also initiated the second phase of capacity expansion in Padur, Bikaner (Rajasthan), Rajkot (Gujarat) and Chandikhol (Odisha). Together, all the reserves is targeted to store 90 days of oil requirements or 12.5 million metric tonnes of crude oil. The second phase is expected to be complete by 2020. Creating additional infrastructure for these four capacities, including storage, transport, pipeline is expected to cost Rs 20,000 crore. The government is currently exploring additional avenues to generate finance these capacities.

Officially, India placed its first order for the strategic reserve in March 2015. Indian Oil Corporation (IOC) bought 2 million barrel from Iraq, as the first order. In addition, IOC and Hindustan Petroleum (HPCL) will buy three million barrels each for storage in Vizag. Thus, the total arrival is estimated to be eight million barrels.

This eight million barrel is approximately 10% of the daily global market demand. Though not huge by global standards, it is expected that this purchase by India can offset drop in the purchase by China and Asian refinery maintenance stoppage.

India is a relatively new player in the SPR game, with USA and Japan leading with 95 million metric tonnes and 44 million metric tonnes of oil respectively. China and Germany are the other big economies ramping up their capacities. For India, its a step that hasn’t come a day too late.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Global Citizen, Kannada roots, Indian values, Man United spirit, Fiscal conservative

Related Articles

Trending now

Delhi High Court rejects bail plea of Shahrukh Pathan, who open fired at police personnel during anti-Hindu Delhi riots

The Court remarked that the video clipping and pictures played before this Court have shaken the conscience of this Court

As ESPN goes for gender-neutral terms, here is how Rajasthan Royals vs Delhi Capitals match commentary may read like

The 'Gentleman's Game' is no longer one as gentleman is not an inclusive term and it offends those who put pronouns in Twitter bios.

Majnu Ka Tila: Kejriwal govt abandons destitute Pakistani Hindu refugee, ‘Seva Bharati’ provides helping hand

RSS and Seva Bharti are providing a helping hand to Pakistani Hindu refugees at Majnu ka Tila camp.

ESPN goes woke, to include gender-neutral cricket terms ‘batter’ instead of ‘batsman’ and ‘Player of The Match’

ESPN Cricinfo writer Sreshth Shah has informed that the portal will now replace the term 'Batsman' with 'Batter', and 'Man of the Match' will now be 'Player of The Match'.

TMC’s Mahua Moitra claims wishing Hindus on Hindu new year is ‘radicalisation’

While Moitra wanted to paint everyone who was celebrating the Hindu new year as 'radical', the hate for Hindus was actually more evident in her tweet.

Political opposition amid pandemic has become so devoid of humanity that Modi haters now want Gujaratis dead

One would've thought the pandemic would have humbled a few people and made them kinder, but then, 'liberals' would rather dance on dead bodies of Gujaratis if it shows 'Modi failed'

Recently Popular

Mayor Sadiq Khan vows to bring the Indian Premier League to London to boost his reelection chances: Details

London mayor Sadiq Khan promises to bring the Indian Premier League to the British capital as part of his reelection campaign.

CNN staffer reveals to Project Veritas spy how they ran pro-Biden propaganda to get Donald Trump out of office

CNN Technical Director Charlie Chester went on five Tinder dates with the Project Veritas spy where he ended up making the damning revelations.

Missionaries converted over 1 lakh people amidst the pandemic, claims to have planted more churches than all the 25 years of their work in...

Missionaries claim they used the distress faced by poor people during the lockdown to convert them to Christianity and build more churches

COVID-19 outbreak: Maharashtra to get 100 MT oxygen from Ambani owned Reliance’s Jamnagar plant

Urban development minister Eknath Shinde said that Maharashtra will receive 100 MT of oxygen supply from Reliance's Jamnagar plant

What happened in Chhabra after Hindu man was stabbed by Muslim men: Call for peace, attack on a Hindu the next day and more

On April 12, the administration extended curfew for one more day at Chhabra, Baran district in Rajasthan after the communal riot

TMC’s Mahua Moitra claims wishing Hindus on Hindu new year is ‘radicalisation’

While Moitra wanted to paint everyone who was celebrating the Hindu new year as 'radical', the hate for Hindus was actually more evident in her tweet.
- Advertisement -


Connect with us