Government gave its in-principle approval to the proposal, announced in the
last year’s Budget, for building two more underground crude oil storages with
private partnership to raise emergency stockpile cover by 12 days to 22 days.
The proposal, which was first announced in the Budget 2017-18, envisages
building a 4-million tonne (MT) storage at Chandikhole in Odisha and 2.5 MT
storage at Padur in Karnataka, finance minister Piyush Goyal told reporters. ,
in the national capital on June 26
is the Phase-II of the country’s strategic storage plan, first drawn up during
the NDA-I government. The cost and timelines of the new storage facilities will
be worked out once engineering details are completed.
the Rs 4,098 crore Phase-I, India has commissioned underground strategic
storage of 1.33 MT at Visakhapatnam and 1.5 MT at Mangalore. The first phase is
being completed at a cost of Rs 4,098 crore.
the Phase-I of the storage plan was drawn up, it was supposed to have covered
around 20 days of consumption. But with growth in consumption, the 5.33 MT
Phase-I capacity is estimated to last for 10 days, going by 2016-17 consumption
data. The additional 6.5 MT will add 12 days' coverage.
The Budget 2017-18 had identified Chandikhole in Odisha and Bikaner in Rajasthan
as the locations. The latter now has been changed to Padur in Karnataka. The
approval also includes construction of dedicated single-point moorings that
would be used for importing crude oil for the two storage facilities.