Budget 2017: India to have two more strategic crude oil reserves

In an effort to insulate the country from future shortage of crude oil in global markets and be energy secure, the Union Budget on Wednesday lined up a plan to set up two more strategic oil reserves in Odisha and Bikaner in Rajasthan.

This would mean that from 5.33 million metric tonnes (MMT) of strategic reserves, India’s crude oil storage facility may zoom to above 15 MT. Currently, India has underground caverns at Visakhapatnam (1.33 million tonnes), Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes). 

“As a phase two of this, Strategic crude reserves- caverns to be set up in Odisha and Bikaner in addition to three existing facilities,” Finance Minister Arun Jaitley said while presenting the Budget.  The strategic caverns are run by Indian Strategic Petroleum Reserves Ltd, a special purpose vehicle set up by Oil Industry Development Board under the ministry of petroleum and natural gas.

In October 2016, Mangalore Refinery and Petrochemicals Ltd (MRPL) received the first parcel of crude oil for delivery into the Mangalore cavern of ISPRL, becoming the second cavern after Vishakhapatnam to be active.  Vishakhapatnam facility was commissioned in June 2015.