[pib] Additional 6.5MMT Strategic Petroleum Reserves at Chandikhol in Odisha and at Padur, Karnataka

Note4students

Mains Paper 3: Indian Economy| Infrastructure: Energy, Ports, Roads, Airports, and Railways etc.

From UPSC perspective, the following things are important:

Prelims level: Locations of SPR

Mains level: Initiatives for ensuring energy security


 News

  1. The Union Cabinet has approved establishment of additional 6.5 Million Metric Tonne (MMT) Strategic Petroleum Reserve (SPR) facilities at two locations, i.e. Chandikhol in Odisha and Padur in Karnataka, including construction of dedicated SPMs (Single Point Mooring) for the two SPRs.
  2. The SPR facilities at Chandikhol and Padur will be underground rock caverns and will have capacities of 4 MMT and 2.5 MMT respectively.

Generating more employment through PPP

  1. The in-principle approval is to take up the project under PPP model to reduce budgetary support of Government of India.
  2. The terms and conditions of such participation would be determined by M/oP&NG in consultation with Ministry of Finance after conducting road shows to elicit requirements of the market, including prospective investors.
  3. The construction phase of the SPRs is likely to generate significant direct & indirect employment opportunities in the states of Odisha and Karnataka.

Back2Basics

Strategic Petroleum Reserve Programme

  1. The Indian Strategic Petroleum Reserve (ISPR) is an emergency fuel store.
  2. Strategic crude oil storages are at 3 underground locations in Mangalore, Visakhapatnam and Padur (near Udupi).
  3. All these are located on the east and west coasts of India which are readily accessible to the refineries.
  4. These strategic storages are in addition to the existing storages of crude oil and petroleum products with the oil companies and serve in response to external supply disruptions.
  5. FM Arun Jaitley in his 2017-18 budget speech has announced that two more such caverns will be set up Chandikhole in Jajpur district of Odisha and Bikaner in Rajasthan as part of the second phase.
Oil and Gas Sector – HELP, Open Acreage Policy, etc.
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