Govt okays oil reserve by 2015

In the works for two years now, the strategic reserve project will enhance the energy security of the country, particularly during short-term oil disruptions, according to a statement. The project, which would have an annual operating cost of Rs 90 crore, would be funded by the Oil Industry Development Board (OIDB) cess.

Indian Strategic Petroleum Reserves Ltd, a Special Purpose Vehicle for implementing the project, would operate as a subsidiary of the OIDB. ‘‘The OIDB cess accumulated would be transferred to the SPV, if possible,’’ Mukherjee said.

India expects crude imports to rise from 70 per cent of consumption now to 85 per cent in the next two decades. There may be plans to expand the size of the reserve later, as a panel set up by the oil ministry recommended last July to doubling its size to 10 million tonnes (73 million barrels).

The CCEA also approved the doubling the remaining 148 km rail line on the Utraitia-Sultanpur-Zafrabad section at a cost of Rs 301.18 crore. Doubling work for 71 km of the section is already complete. The section also offers a natural route for flow of traffic from the country’s eastern region to UP, Punjab and Haryana.

The CCEA also approved minor modifications and additions to an earlier decision relating to strengthen and development of agricultural education in the country.

Neyveli, NMDC stake sales deferred

NEW DELHI: Despite being listed twice on the agenda of the Union Cabinet, the proposals for disinvestments in Neyveli Lignite and National Mineral Development Corporation were deferred today as Finance Minister P Chidambaram was not present at the meeting. Defence Minister Pranab Mukherjee told mediapersons, ‘‘Twice it came up and twice it was deferred is your conjecture…There’s no authenticity to it.’’ There were a slew of other decisions taken by the Cabinet today, including approval for signing and ratifying the Regional Cooperation Agreement between 16 Asian countries on combating Piracy and Armed Robbery on the high seas.