Monday December 10, 2018
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India to build strategic petroleum reserves under Rs 1,150 crore plan

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By NewsGram Staff Writer

To secure India’s energy economy against supply and price fluctuations globally, an additional funding of over Rs.1,150 crore is being provided to Indian Strategic Petroleum Reserves Ltd. (ISPRL).

Through supplementary demands for grant presented to parliament earlier this week, union Finance Minister Arun Jaitley sought an allocation of Rs.1,153 crore for buying crude oil to fill the first strategic crude oil reserve being built at Visakhapatnam by ISPRL.

India plans for a strategic reserve that could hold up to 1.3 million tonnes of crude oil.

Under this plan, the government would set up a Strategic Crude Oil Storage of about 5.33 million tonnes at two other locations in the country — Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes) in the first phase.

The Mangalore and Padur projects, both on the western coast of Karnataka, are nearly complete, awaiting pipeline connections from the nearest ports.

A second phase is also under planning, which seeks to create 12.5 million tonnes storage capacity at Padur, Chandikhol (Odisha), Bikaner (Rajasthan), and Rajkot (Gujarat).

While India currently imports about 80 percent of its oil requirements, the International Energy Agency predicts that by 2020, India could become the world’s largest oil importer.

The current slump in oil prices that have been in steady fall since the later half of last year is considered an opportune time to build up strategic oil reserves.

The India basket of crude oil fell this week to levels around $52 for a barrel of nearly 160 litres.

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SpiceJet To Test A Flight Powered By BioFuel

The success of the flight will pave the way for further testing and aid in fulfilling the central government's move to curtail India's dependence on crude oil imports

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Spicejet, Wikimedia

Budget passenger carrier SpiceJet is set to conduct India’s first test flight which will be partially powered by biofuel, on Monday.

According to sources, a concoction of bio-fuel will power one of the turbine engines of a SpiceJet’s Q400 turboprop flight.

“This will be India’s first test flight using biofuels,” sources said.

“There will be government officials, who will monitor the parameters set up for such a test flight.”

The flight will be operated from Dehradun to Delhi. It will be received by key Cabinet Ministers and airline’s top management at IGI Airport Terminal 2.

 

SpiceJet, Biofuel
A concoction of bio-fuel will power one of the turbine engines of a SpiceJet’s Q400 turboprop flight.

 

Globally, bio-fuel powered flights are operated in Canada.

The development assumes significance as high air turbine fuel (ATF) prices have dented India’s domestic airline sector with all the major players reporting losses for the first quarter of 2018-19.

Currently, fuel prices constitute 45-50 per cent of the overall operations cost of domestic airlines.

Also Read: SpiceJet To Launches A Direct Service on The Kolkata-Dhaka-Kolkata Sector

India’s ATF prices are amongst the highest in the world due to the addition of state levies and taxes. The fuel is not under the GST ambit unlike the bunker fuel used in the shipping industry.

Besides, the success of the flight will pave the way for further testing and aid in fulfilling the central government’s move to curtail India’s dependence on crude oil imports.(IANS)