Updated By: LatestGKGS Desk
Cabinet Approved Establishment of Additional 6.5MMT Strategic Petroleum Reserves
Union Cabinet Approved Establishment of additional 6.5MMT Strategic Petroleum Reserves at Chandikhol & Padur- Details, Aim, Purpose, About
The Union Cabinet chaired by Prime Minister Narendra Modi on 28th June 2018, has approved the establishment of additional 6.5 Million Metric Tonne (MMT) Strategic Petroleum Reserve (SPR) facilities at two locations, viz Chandikhol in Odisha and Padur in Karnataka.
The Cabinet approval also came for the construction of dedicated SPMs (Single Point Mooring) for the two Strategic Petroleum Reserves (SPRs).
The SPR facilities at Chandikhol and Padur will be underground rock caverns and will have capacities of 4 MMT and 2.5 MMT respectively.
The SPR facilities on both the locations will be built up by the project under Public Private Partnership (PPP) model to reduce budgetary with the support of Government of India.
The terms and conditions of such PPP participation will be determined by Ministry of Petroleum and Natural Gas in consultation with Ministry of Finance after conducting road shows to elicit requirements of the market, including prospective investors.
The Cabinet’s approval for establishing additional 6.5 MMT Strategic Petroleum Reserve facilities will provide an additional supply of about 12 days and is believed to augment India’s energy security.
This Cabinet’s decision is in line with Government’s announcement of setting up of two additional SPRs during 2017-18 budget.
