| To ensure energy
security, the Government of India has decided to set up 5
million metric tones (MMT) strategic crude oil storages at
three locations namely, Mangalore, Visakhapatnam and Padur
(near Udupi). These strategic storages would be in addition
to the existing storages of crude oil and petroleum products
with the oil companies and would serve as a cushion in response
to external supply disruptions. The construction of the proposed
strategic storage facilities is being managed by Indian Strategic
Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle,
owned by Oil Industry Development Board (OIDB).
The proposed storage sites are located near
east and west coasts so that they are readily accessible to
the refining sector through marine distribution.
Strategic Crude Oil Reserves would be in
underground rock caverns and are expected to be operational
by 2012. Underground rock caverns are considered the safest
means of storing hydrocarbons. The estimated cost of the project
is around Rs.2400 crore at September 2005 prices excluding
the cost of crude oil for filling the caverns. ISPRL will
have ownership and control of the crude oil inventories and
will coordinate the release and replenishment of Crude Oil
Stock during supply disruptions through an Empowered Committee
to be constituted by the Government of India.
Visakhapatnam
Project:
EIL has been appointed as Project Management
Consultant. EIL has, in turn, appointed M/s. SWECO of Sweden
as their back up consultant. Supplementary investigations
carried out at site through M/s RITES provided the inputs
required for determining the optimal cavern capacity. Based
thereon, the storage at Visakhapatnam originally planned for
storing 1.0 MMT of crude, has been enhanced to 1.33 MMT. All
requisite environmental clearances from Ministry of Environment
& Forest (MOE&F) and State Pollution Control Board
have been received including the revised clearances for enhanced
storage capacity. Hindustan Construction Company Ltd. (HCC),
one of India’s premier infrastructure construction companies
has been awarded the underground civil works contract. The
effective date for commencement of construction of the cavern
is January 16, 2008. The project is scheduled to be completed
by January 2011. The contractor has mobilized personnel at
the site and work on the Access tunnel and the shafts have
commenced. HCC bagged the order for Rs.375.38 crores, through
a Net based Reverse Auction process, a novel method for a
rate contract of such a large magnitude. The Project involves
excavation of huge underground caverns, 30 m high (almost
100 feet) and 20 meter wide. The total length of the caverns
will be more than 3 kilometers and the amount of rock expected
to be excavated will be approximately 5 million tons. HCC
has obtained necessary clearances from Labour Department.
National Insurance Company Ltd. has been
awarded the Contractors’ All Risk Insurance cover of
the underground civil works.
For the above ground works, the NIT for prequalification
of bidders has been issued on May 1, 2008. Based on the discussions
with the Backup consultant regarding the process design basis,
the scope of above ground works has been finalized. The bid
package is likely to be finalized by June 2008.
Mangalore Project:
EIL has been appointed as Project Management
Consultant. EIL has, in turn, appointed M/s. Geo-stock of
France as their back up consultant. Government has approved
storage of 1.5 MMT of crude oil. However, supplementary investigations
are being carried out at site through M/s RITES for determining
the optimal cavern capacity. The environmental clearance dated
11th March 2008 has been received from MOE&F. Land for
the project has been acquired by Mangalore Special Economic
Zone Ltd. (MSEZL). On account payment of Rs.41 crore (approx.)
has been made to MSEZL. Approval has been obtained from Development
Commissioner, Ministry of Commerce for establishing the unit
in SEZ area. Central Line Survey for pipeline route has been
completed. Cadastral survey report for the pipeline route
is under review by EIL. The tenders for pre-qualification
of underground bidders is likely to be issued shortly.
Padur Project :
Cadastral Survey for plot is completed. Application
has been filed with Karnataka Udyog Mitra on 29th April 2008
for acquisition of land for the site through Karnataka Industrial
Area Development Board (KIADB). Central Line Survey for the
proposed 35 km pipeline route has been completed. Cadastral
survey for the same is nearing completion. Application has
also been filed with Department of Environment and Ecology,
Government of Karnataka for approval of the terms of reference
for the environmental impact and risk assessment reports.
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