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The Government has approved building of Strategic Crude Oil Reserves of 5 Million Metric Tonnes (MMT) at Mangalore (1.5 MMT), Vizag (1.0 MMT) and Mangalore or nearby location (2.5 MMT). In order to implement the project, a Special Purpose Vehicle (SPV) by the name of India Strategic Petroleum Reserves Limited (ISPRL) has been incorporated on 16 June 2004 as a wholly owned subsidiary of Indian Oil Corporation Ltd. (IOC) with an initial investment of Rs. One crore. M/s engineers Indian Limited have been engaged as Project Management Consultant for preparation of bid documents, tendering, detailed engineering etc. An amount of Rs.48 lakh has been spent by ISPRL on the project till March, 2005.
It is estimated that the capital investment for building strategic storage reserves at Mangalore (1.5 MMTPA) and Vishkapatnam (1 MMTPA) will be approximately Rs. 1360 crore at June , 2004 prices. Additionally, the cost of filling up the strategic crude oil storage would be based on the then prevailing international prices of crude. The construction time is expected to be around 48 months from the date of award of work.
This information was given by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas and Panchayati Raj in a written reply in the Rajya Sabha today.
RCJ/kc/ strategic storage of crude oil(28.4.05 RS)
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