<p>The Union Cabinet Wednesday gave an in-principle approval for building two strategic crude oil reserves including one at Padur (Udupi district) in Karnataka with 2.5-million tonne capacity. The move will insulate India from spike in global prices of crude oil, Finance Minister Piyush Goyal said.</p>.<p class="bodytext">The aggregate capacity of the second reserve will be 4 million tonnes and it will be set up at Chandikhol in Odisha. The two reserves will provide additional supply of about 12 days of India’s crude requirement.</p>.<p class="bodytext">“We are going to explore public-private partnership mode for execution of these underground caverns for which potential investors will be approached,” Goyal said, adding that the Cabinet has only accorded in-principle approval, while costs of the advanced design and engineering required would be worked out.</p>.<p class="bodytext">The terms and conditions would be determined by the petroleum ministry in consultation with finance ministry after conducting road shows to elicit requirements of market, including investors.</p>.<p class="bodytext">Under the strategic petroleum reserve–phase one programme, the government has built crude oil storage facilities with total capacity of 5.33 million tonnes at Visakhapatnam and Mangaluru.</p>
<p>The Union Cabinet Wednesday gave an in-principle approval for building two strategic crude oil reserves including one at Padur (Udupi district) in Karnataka with 2.5-million tonne capacity. The move will insulate India from spike in global prices of crude oil, Finance Minister Piyush Goyal said.</p>.<p class="bodytext">The aggregate capacity of the second reserve will be 4 million tonnes and it will be set up at Chandikhol in Odisha. The two reserves will provide additional supply of about 12 days of India’s crude requirement.</p>.<p class="bodytext">“We are going to explore public-private partnership mode for execution of these underground caverns for which potential investors will be approached,” Goyal said, adding that the Cabinet has only accorded in-principle approval, while costs of the advanced design and engineering required would be worked out.</p>.<p class="bodytext">The terms and conditions would be determined by the petroleum ministry in consultation with finance ministry after conducting road shows to elicit requirements of market, including investors.</p>.<p class="bodytext">Under the strategic petroleum reserve–phase one programme, the government has built crude oil storage facilities with total capacity of 5.33 million tonnes at Visakhapatnam and Mangaluru.</p>