| 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, Visakhapatnam, Mangalore 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 storages would be in underground
rock caverns near east and west coasts so that they are readily
accessible to the refining sector. 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.
Engineers India Limited (EIL) has been engaged
as the Project Management Consultant for all three projects.
As on 31.3.2008, the authorized capital,
paid up capital and subscribed capital of the company were
Rs.1,000 Crore, Rs.500 Crore and Rs.94.30 crore respectively.
Underground civil works for Visakhapatnam
and Mangalore project are under progress. Pre-qualification
of bidders for aboveground works for Mangalore project are
under examination. Tenders have been issued to pre-qualified
bidders for underground works at Padur.
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