Financial Daily from THE HINDU group of publications
Friday, Mar 21, 2003
Financial Daily from THE HINDU group of publications Friday, Mar 21, 2003 |
|
|
|
|
|
Industry & Economy
-
Petroleum Supplies won't be hit: Naik Our Bureau
MUMBAI, March 20 INDIA has entered into "contingency supply agreements'' with oil producing countries which are not in the "war zone'' to ensure that crude oil supplies are not disrupted. "We have been importing nearly 65 per cent of crude requirements from the West Asian region. Some of the supplier countries are in the war zone. So, in case there is disruption of supplies, we have made contingent arrangements. Firm orders have been placed on countries outside the war zone,'' Mr Ram Naik, Union Minister of Petroleum and Natural Gas, told newspersons on Thursday. He did not give details of the new agreements as it would breach confidentiality. According to the Minister, the country buys crude from 27 countries and conscious efforts have been made to buy from countries away from the West Asian region. Mr Naik also said that the country's crude oil and petroleum products reserves will last for the next two months. "Right from September we have been chalking out a plan for increasing the petro product stocks. We currently have crude oil, petrol, diesel, LPG, kerosene stocks to last at least two months.'' The country's indigenous supplies could also be increased if at all the Iraq conflict lasts long. India imports almost 70 per cent of its crude oil requirements. India may also start getting some of the 30 lakh tonnes of crude oil from the Sudan oil field in which ONGC and Oil India Ltd have picked up 25 per cent stake. "As part of our strategy to pick up equity abroad, India had decided to purchase stake in Greater Nile Corporation, Sudan for Rs 3,600 crore. The deal was completed 10 days back,'' Mr Naik said. Although the country has enough supplies, the Minister said that he could not give any assurance on product prices in the country. "Prices would depend on the international crude prices." India is now better equipped to face any shortage or contingency arising from the war as compared to the 1991 Gulf war. "Our forex reserves are the highest since Independence. Also, we now have alternative sources of acquiring crude and products. Contingent arrangements made after studying the situation during the last war.'' The Government has in-principle agreed to a long-term plan for setting up strategic reserves for petro products. The project would need Rs 4,000 crore and decisions on who would invest in setting up the infrastructure are yet to be taken. Mr Naik has also urged Indian Oil Corporation workers to withdraw their `work-to-rule' agitation. "I have appealed to them (workers); it is the duty of every Indian to ensure that there is no disruption in the supplies of essential commodities such as LPG or kerosene. They should withdraw their agitation,'' he said.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|