New Delhi: The Union Cabinet Committee on Economic Affairs has approved the enhancement of cavern capacity, manner of utilization and revised cost estimates of Strategic Crude Oil Storage cavern at Visakhapatnam.
The CCEA also approved enhancement of the cavern capacity at Visakhapatnam from 1.0 Million Metric Tonne (MMT) to 1.33 MMT, sharing of 0.30 MMT additional capacity by Hindustan Petroleum Corporation Limited (HPCL) on proportional cost sharing basis and the revision of cost estimates from Rs 671.83 crore for 1.0 MMT to Rs 1038 crore for 1.33 MMT.
The enhanced storage capacity at Visakhapatnam will enable larger strategic storage of crude oil at a lower cost due to cost sharing while providing operating flexibility and cost savings to HPCL.
This underground storage depot, along with the ones in Managalore and Padur in Karnataka, will be able to store about 5.33 MT of crude oil. These storage facilities would meet about 14 days of India’s oil requirement. The Visakhapatnam storage caverns are expected to be completed by the year end.
The caverns are about ten storeys tall and extend to more than three kilometres.
The storage caverns will place the country among nations like the United States, Japan and China, the few countries which have strategic reserves.(INN)