India to decide on strategic oil reserves policy shortly

Monday, 03 February 2003, 20:30 IST
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BANGALORE: India will shortly decide on building strategic reserves of oil to face any eventualities, including a possible attack on Iraq. "The quantity of such reserves will be decided in due course," Petroleum minister Ram Naik said. "I am meeting Prime Minister Atal Bihari Vajpayee Sunday because a policy decision needs to be taken on keeping strategic oil reserves," he said at a news conference here. "Once the quantity of reserves is decided, the question will be who will bear the cost. There are the finance, defence, energy and fertiliser ministries that will have to bear the cost." However, Naik dismissed any fear over oil shortage as a result of a U.S. war against Iraq. "Nobody should have unnecessary fear complex," Naik reassured. "If the war happens, we are sure that our tanks are full. There won't be any disruption as we have made enough arrangements to store up." India imports nearly 70 percent of its crude oil requirements. It imported crude oil worth 780 billion in 2002. Efforts under the New Exploration Licensing policy (NELP) have already yielded results with several discoveries by companies including Reliance Industries, Niko Resources of Canada and Cairn Energy. Naik was confident that by June 30 all nine states and four union territories included in the first phase would be providing petrol blended with five percent ethanol. Andhra Pradesh, Gujarat, Maharashtra, Punjab and Uttar Pradesh have already begun the process of stocking ethanol from the sugar factories for blending petrol.
Source: IANS