What do you understand by Strategic petroleum Reserves? Discuss rationale and India's efforts towards building Strategic petroleum Reserves.
Currently, India depends on imports for its crude oil needs. The demand is likely to grown in the future. Any distortions in supply or price fluctuations could cost heavy to India.
Since 2003, the Government of India has commissioned the strategic oil reserves to maintain nation’s energy as well as economic security.
Strategic Petroleum Reserves (SPR) are caverns which are built wherein petroleum would be stored and in times of emergency it could be utilised. This could reduce our dependency on imports in dire need of the hour.
In this direction, the government established the Visakhapatnam storage facility and two other projects at Mangaluru and Padur. These facilities will enable India to meet its energy security goal.
Indian Strategic Petroleum Reserves Limited (ISPRL) will operate the storage facilities. In order to boost infrastructural development and to achieve geopolitical high-ground, this initiative can symbolizes a great milestone. This will also ensure that India will never have to see the dire days it saw during the 1990 crisis.
The strategic reserves will enable to cover strategic risks of the government and also act as a buffer in case of any disruptions caused in petroleum supply. This will enable smooth function of the nation and especially the economy. (205 words)