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Contingency plan for oil imports in place: Minister

The government has drawn up a contingency plan for import of oil in the event of a war between the United States and Iraq, the Lok Sabha was informed during question hour on Thursday.

A number of countries from the Middle East and other regions of the world have been identified for importing crude oil, Minister of State for Petroleum Santosh Kumar Gangwar said in a written reply.

India is currently 70 per cent import dependent to meet its just over 100 million tonnes of crude oil requirement.

The country spent Rs 60,397 crore (RS 603.97 billion) to import over 78.7 million tonnes of crude oil in 2001-02, he said. Besides, it also imported about one million tonnes of petroleum products like LPG and kerosene for Rs 1200 crore (Rs 12 billion).

The oil companies would be procuring crude oil from these countries as per their requirements. The oil import bill would depend upon the prices of crude oil prevailing at the time of actual purchases.

Gangwar further informed that the government has taken up the matter of disparity in pricing of crude oil with member countries of the Organisation of Petroleum Export Countries.

To another question, Gangwar said the government was considering providing strategic tankage for crude oil gradually in phases with a view to achieve a total of 45 days' cover.

"The proposed tankage is envisaged to meet the emergency requirements arising out of any disruptions in crude oil supplies from abroad," he said and added that details of the policy had not been finalised yet.

UNI, PTI

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