Cabinet approves filling of Padur Strategic Petroleum Reserves in Karnataka

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the filling of Padur Strategic Petroleum Reserves (SPR) in Karnataka by overseas National Oil Companies (NOCs). The filling of the SPR will be under PPP model and is being undertaken to reduce budgetary support of Union Government. The SPR facility at Padur is underground rock cavern with total capacity of 2.5 million metric tonnes (MMT) having four compartments of 0.625 MMT each.

Background

Indian Strategic Petroleum Reserves Ltd. (ISPRL) has constructed and commissioned underground rock caverns for storage of total 5.33 MMT of crude oil at three locations namely Mangalore (1.5 MMT), Vishakhapatnam (1.33 MMT), and Padur (2.5 MMT). The total 5.33 MMT capacity under Phase-I of the SPR programme is currently estimated to supply approximately 9.5 days of India’s crude requirement. Government also has given ‘in principle’ approval for establishing additional 6.5 MMT SPR facilities at Chandikhol in Odisha and Padur in Karnataka in phase II which is expected to augment India’s energy security by 11.5 days according the consumption data for FY 2017-18.

Month: Current Affairs - November, 2018