Govt nod for 5mn tonne crude reserve

The union cabinet today approved a proposal to build strategic crude reserve of five million tonne (37 million barrels) at a cost of Rs 11,267 crore.

Defence minister Pranab Mukherjee said storage facilities capable of holding 15 days of domestic demand would be built in three locations and would be completed in nine years.

"The project will enhance the energy security of the country, particularly during short-term oil disruptions," a government statement said.

The storage facilities would be managed by the Oil Industry Development Board (OIDB), the statement added.

The cabinet also decided that Indian Strategic Petroleum Reserves, which is owned by Indian Oil Corporation, would be made a subsidiary of OIDB.