Budget 2017: India’s New Strategic Petroleum Oil Storages in Odisha & Rajasthan #Hindustan360

India is planning to expand 4 more strategic crude oil facilities in second phase at Bikaner in Rajasthan, Rajkot in Gujarat, Padur in Udupi district of Karnataka and Chandikhole in Jajpur district of Odisha. View more at #Hindustan360.
In a bid to insulate the country from volatility in global oil market, the government will build two more underground crude oil storages in Odisha and Rajasthan.
Announcing the two new facilities at Chandikhol in Odisha and Bikaner in Rajasthan, Finance Minister Arun Jaitley in his Budget for 2017-18 also exempted income of foreign company, which books a capacity in the strategic storages, from sale of leftover stock. India has already built underground storages in rock caverns at Visakhapatnam (1.33 million tonnes), Mangalore (1.5 MT) and Padur (2.5 MT).
  • The storage at Chandikhol will be an underground rock cavern while the one at Bikaner will be an underground salt caverns.
  • Phase-II storage will have a total capacity of 10 million tonne, which includes 4.4 MT storage capacity at Chandikhol and 5.6 MT at Bikaner.
  • “With this, India will move to the high energy table of the world,” Oil Minister Dharmendra Pradhan told here. “We have a lot of learning from the first phase construction. We plan to do the second phase in 3-4 years.”
  • Last week, UAE’s national oil company ADNOC signed an agreement to hire half of the capacity of India’s maiden strategic oil storage at Mangalore.
  • India is 81 per cent dependent on imports to meet its crude oil needs.

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