Now, govt to lease strategic oil reserve space to pvt cos

Strategic oil reserve space to private companies

: The government has announced its plans to

lease

a portion of its Strategic

Petroleum Reserve

capacity to private oil companies. This decision comes after the budget eliminated a Rs 5,000-crore plan aimed at purchasing crude oil to fill the reserve, according to an official.
According to ET, India currently maintains strategic crude storage facilities in three locations: Mangalore and Padur in Karnataka, and Visakhapatnam in Andhra Pradesh.

These facilities collectively have a

capacity

of 5 million metric tonnes (mmt). Regulations permit a portion of these storage facilities to be leased to oil companies, while ensuring that the government retains the right to access crude from these reserves in the event of an emergency.
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L R Jain, the CEO of

Indian Strategic Petroleum Reserves Limited

(ISPRL), revealed on Tuesday that approximately 0.75 mmt of capacity in Mangalore and about 0.25 mmt in Visakhapatnam are presently vacant and in need of filling.

Jain further stated that ISPRL, the entity responsible for managing India’s Strategic Petroleum Reserve, will soon initiate the process of inviting expressions of interest (EoIs) from energy companies interested in commercially utilizing the available storage space.

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