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The government saves Rs 5,000 crore by filling three oil reserves, hindrance in making new ones

Despite the growing need for strategic oil deposits in the country, there are problems in their construction. The government has saved more than Rs 5,000 crore by filling the current three reserves with crude oil which became very cheap last year. Despite this, the path of creating two new strategic oil reserves in the country does not seem easy. In June 2018, the central government decided to create two strategic reserves of 65 million tonnes at Chandikhol in Odisha and Padur in Karnataka. It is pending due to a delay in land acquisition.

Both these projects of the central government are being talked to the state governments, but the government officials are also not in a position to tell by when this work will be completed. Recently, the Parliamentary Committee has also expressed its concern about the delay in the project in a report. Currently, Visakhapatnam, Mangalore and Padur in the country have strategic reserves of 1.3 million tonnes, 1.5 million tonnes Despite the growing need for strategic oil deposits in the country, there are problems in their construction. The government has saved more than Rs 5,000 crore by filling the current three reserves with crude oil which became very cheap last year. Despite this, the path of creating two new strategic oil reserves in the country does not seem easy. In June 2018, the central government decided to create two strategic reserves of 65 million tonnes at Chandikhol in Odisha and Padur in Karnataka. It is pending due to a delay in land acquisition.

Both these projects of the central government are being talked to the state governments, but the government officials are also not in a position to tell by when this work will be completed. Recently, the Parliamentary Committee has also expressed its concern about the delay in the project in a report. Currently, Visakhapatnam, Mangalore and Padur in the country have strategic reserves of 1.3 million tonnes, 1.5 million tonnes and 2.5 million tonnes of crude oil respectively. Crude can be stored equal to 9.5 days consumption of the country in these three stores.

In recent times, when crude was very cheap in the international market, the Indian government has filled all these three stores. The new reserves in Chandikhol and Padur, which are set to be built, will keep the oil equivalent to 12 days of the country’s capacity. Apart from this, India is also working on purchasing strategic reserves of crude oil in America. The government plans that India will have at least 30 days of oil reserves in emergency situations in the coming days.

Last year, the government allocated Rs 3,184 crore to fill all three reserves. Though only Rs 690 crore was allocated earlier at the beginning of the financial year 2020-21, when the international prices came down, the additional allocation was made. It is said that when the supply of petroleum products in the country was greatly reduced in April-May, the refineries of the government companies started putting imported oil in strategic reserves. This has saved the government Rs 5,069 crore.and 2.5 million tonnes of crude oil respectively. Crude can be stored equal to 9.5 days consumption of the country in these three stores.

In recent times, when crude was very cheap in the international market, the Indian government has filled all these three stores. The new reserves in Chandikhol and Padur, which are set to be built, will keep the oil equivalent to 12 days of the country’s capacity. Apart from this, India is also working on purchasing strategic reserves of crude oil in America. The government plans that India will have at least 30 days of oil reserves in emergency situations in the coming days.

Last year, the government allocated Rs 3,184 crore to fill all three reserves. Though only Rs 690 crore was allocated earlier at the beginning of the financial year 2020-21, when the international prices came down, the additional allocation was made. It is said that when the supply of petroleum products in the country was greatly reduced in April-May, the refineries of the government companies started putting imported oil in strategic reserves. This has saved the government Rs 5,069 crore.