Centre is planning to expand its strategic petroleum reserves with new facilities in Madhya Pradesh and Rajasthan while adding storage capacity at Mangalore.

As per the parliamentary committee report, the government owned Indian Strategic Petroleum Reserves Ltd (ISPRL), a special purpose vehicle, has completed the feasibility study for the Bikaner caverns and is in the process of finalising it.

ISPRL has completed a feasibility study, acquired 155 acres of land and is in the process of obtaining special economic zone (SEZ) notification for 66 acres. The facility will be built by Oil and Natural Gas Corporation, it said.

Further, a pre-feasibility study for Bina has also been completed, with a detailed feasibility report to be initiated soon. This is in addition to the 1.7 million tonne (MT) storage facility being planned at Mangalore, adjacent to its existing Phase-I facility.

The report said that the government is also adding 6.5 MT of reserves under its Phase-II expansion plan – 2.5 MT at Padur and 4 MT at Chandikhol in Odisha.

The parliamentary committee has also urged the petroleum ministry to ensure the finalisation of RFPs, SEZ notification and financial closures within the scheduled timelines, while ensuring optimal utilisation of funds, besides maintaining global standard of 90 days of crude oil storage within the country as soon as feasible.

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