India is set to invest nearly 56 billion rupees (about $646 million) to enhance its strategic petroleum reserves (SPRs) in the upcoming budget. This funding will support the purchase of oil for reserves managed by Indian Strategic Petroleum Reserve Ltd (ISPRL), which operates three facilities in southern India, with a total capacity of around 5 million tons.
ISPRL plays a key role in securing India’s energy needs, especially since the nation is the third-largest oil importer in the world, relying on imports for over 80% of its oil supply. To safeguard against potential global supply disruptions, India is working to expand these reserves. Part of the new budget includes approximately 1.8 billion rupees designated for managing the existing reserves and an additional 3.35 billion rupees aimed at acquiring land and building new storage facilities.
In addition to the current expansion plans, ISPRL is looking for private companies to develop a new 2.5 million metric ton facility in Padur, Karnataka. There’s also a proposal to establish a 4 million ton reserve at Chandikhol in Odisha. These initiatives reflect India’s commitment to bolster its energy security amid fluctuating global oil markets.
Furthermore, the logistical support from companies, such as the Abu Dhabi National Oil Co, highlights the collaboration essential in maintaining and expanding India’s petroleum infrastructure.
Overall, these investments in strategic reserves are crucial for India’s energy strategy, ensuring a buffer against unexpected disruptions in the oil supply chain.
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India,strategic petroleum reserves,oil imports,ISPRL,budget allocation,SPR
