ISPRL

Rs 5,500 cr Budget provision for ISPRL could be diverted to building SPR facilities or cater to fuel subsidies because India's storages are nearly full

Mangalore Refinery and Petrochemicals Limited (MRPL) signed a Memorandum of Understanding on Tuesday with Indian Strategic Petroleum Reserves Limited to utilise ISPRL's underground caverns for crude oil storage. The partnership aims to enhance MRPL's crude storage capacity, ensuring supply security and mitigating risks arising from global market volatility. The agreement was signed at MRPL's office in Mangaluru by Executive Director (Refinery), MRPL, B Sudharshan and ISPRL Deputy CEO Atul Gupta, in the presence of MRPL Managing Director Mundkur Shyamprasad Kamath and ISPRL CEO & MD L R Jain. Under the agreement, MRPL will lease storage at ISPRL's facilities, reducing capital expenditure while improving operational flexibility. Officials stated that the strategic location of ISPRL's storage sites, close to MRPL's refinery and the coast, would help cut transportation costs and facilitate smoother logistics. The collaboration is expected to support India's energy security efforts ...

In 2021, India overhauled its policy to allow part of SPRs to be used commercially, mirroring a model adopted by countries such as Japan and South Korea that allows private lessees, mostly oil majors

State-run ISPRL has been selling from the caverns to local refiners after a change in the government rules in 2021

India's decision to commercialise half its strategic petroleum reserves could jeopardise its energy security

Tax changes on ISPRL will be effective April 1

India's government approved two strategic petroleum reserve (SPR) sites with a total capacity of 6.5 million tonnes in June