Cabinet nods setting up of petroleum reserves in Odisha, Karnataka

New Delhi [India], June 27 (ANI): The Union Cabinet on Wednesday approved the proposal for building additional 6.5 Million Metric Tonne (MMT) Strategic Petroleum Reserves in Odisha and Karnataka.
Construction of dedicated SPMs (Single Point Mooring) for the two SPRs is included in the proposals in Odisha's Chandikhol and Karnataka's Padur.
The SPR facilities at Chandikhol and Padur will be underground rock caverns and will have capacities of 4 MMT and 2.5 MMT, respectively.
Government had announced setting up of two additional SPRs during the budget announcement for 2017-18.
The construction phase of the SPRs at Chandikhol and Padur is likely to generate significant direct and indirect employment opportunities in the states of Odisha and Karnataka.
The Indian Strategic Petroleum Reserves Limited has already constructed underground rock caverns for storage of 5.33 MMT of crude oil at three locations- Visakhapatnam (1.33 MMT), Mangalore (1.5 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 10 days of India's crude requirement according to the consumption data for Financial Year 2016-17. Cabinet's approval for establishing additional 6.5 MMT Strategic Petroleum Reserve facilities will provide an additional supply of about 12 days and is expected to augment India's energy security. (ANI)