India to build three new oil reserves to increase emergency stockpile amid rising domestic fuel demand
India, the world's third-biggest oil importer and consumer, imports more than 80% of its oil needs and is constantly diversifying its crude sources to mitigate the impact of geopolitical crises on its oil procurement.
Indian Strategic Petroleum Reserve Ltd's CEO L R Jain told Reuters that state-run engineering consultancy Engineers India Ltd is conducting feasibility studies to build the new reserves. "In case of exigencies, we will be better prepared," he said.
India currently has strategic petroleum reserves at three locations - Mangalore, Padur and Vizag - in southern India to store up to 5.33 million tons of crude that could be tapped in the case of supply disruptions.
It plans to create a new 5.2 million-5.3 million ton reserve at salt caverns at Bikaner in the desert state of Rajasthan, and a 1.75-million ton facility at Mangalore in southern Karnataka state, he said.
It will also create a reserve in Bina, central Madhya Pradesh state, with capacity yet to be decided, he said.
After feasibility studies, the projects will require approval from the federal cabinet.
They will come in addition to a new 2.5 million-ton strategic petroleum reserve at Padur and a 4 million-ton facility at Chandikhol in eastern Odisha state that have already been approved.
India has over the years overhauled its policy on strategic petroleum reserves to allow private participation and commercialisation, mirroring the model adopted by countries such as Japan and South Korea which allow private lessees, mostly oil majors, to trade the crude.
"We are looking for 90 days of reserves," Jain said. "And Indian fuel demand is also rising, so we need additional storage."
Expanding oil storage capacity would also help India join the International Energy Agency, which requires its members to hold a minimum of 90 days of oil consumption.
India's storage capacity, including that held by companies and in transit, is currently sufficient to meet its fuel demand for 75 days.
(Reporting by Nidhi Verma; Editing by Jan Harvey)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
29 minutes ago
- Time of India
India's digital identity adoption surges amid rising trust, AI integration: Report
New Delhi, As India's digital ecosystem expands at an unprecedented pace, Indian consumers are rapidly embracing new-age identity technologies while balancing convenience with security concerns, a new report said on Wednesday. The data compiled by Okta highlights that more than 30 per cent of Indian users log into ten or more personal online accounts every month -- showcasing the country's accelerating digital footprint. Amid this growth, Indian consumers are also displaying a greater readiness to adopt biometrics and AI-driven services compared to global peers. Despite the growing array of authentication methods, passwords remain the most convenient option for 82 per cent of Indians. However, biometrics are steadily gaining traction, with 55 per cent using fingerprint authentication and 35 per cent relying on Face ID for smoother logins. "Despite the new options, 82 per cent of Indians still find passwords to be the most convenient way to verify their identity," the report said. "More than half of the population (54 per cent) find it convenient to use a government ID like Aadhaar for verification purposes, followed by SMS/voice calls (44 per cent)," it added. Security perceptions remain high for passwords (79 per cent), SMS authentication (74 per cent), and fingerprints. However, risky practices persist -- 1 in 5 Indians reuse the same password across all personal accounts. India's growing trust in digital platforms is also noteworthy. As many as 67 per cent of Indian respondents trust businesses to protect their data, well above the global average of 50 per cent. This trust extends to key sectors -- banks (79 per cent), tech firms (73 per cent), government agencies (70 per cent), and online retailers (69 per cent). However, digital vigilance is rising too, with 81 per cent of Indians expressing concern about identity fraud -- significantly higher than the global average of 63 per cent. The report, based on a global survey of 6,750 consumers (including 750 from India), also found that Indians are more open to engaging with enterprise AI agents. While 65 per cent appreciate the speed and 24/7 support of AI, as many as 76 per cent still prefer human interaction. Interestingly, 64 per cent of Indians are willing to share health data with AI agents, compared to 32 per cent globally, and 49 per cent are comfortable sharing financial data, compared to 27 per cent globally. "AI is no longer a future concept -- it is embedded in the way we live, work, and connect," said Shakeel Khan, Regional Vice President and Country Manager, Okta India. Ben Goodman, SVP & GM, Asia Pacific & Japan at Okta, added, "In Asia Pacific, trust has become the true currency of digital engagement. From logins to AI agents, consumers want experiences that are seamless, secure, and respectful of their data."
Time of India
29 minutes ago
- Time of India
Intel's new CEO explores big shift in chip manufacturing business
Intel 's new chief executive is exploring a big change to its contract manufacturing business to win major customers, two people familiar with the matter told Reuters, in a potentially expensive shift from his predecessor's plans. If implemented, the new strategy for what Intel calls its "foundry" business would entail no longer marketing certain chipmaking technology, which the company had long developed, to external customers, the people said. Since taking the company's helm in March, CEO Lip-Bu Tan has moved fast to cut costs and find a new path to revive the ailing U.S. chipmaker. By June, he started voicing that a manufacturing process that prior CEO Pat Gelsinger bet heavily on, known as 18A, was losing its appeal to new customers, said the sources, who spoke on condition of anonymity. To put aside external sales of 18A and its variant 18A-P, manufacturing processes that have cost Intel billions of dollars to develop, the company would have to take a write-off, one of the people familiar with the matter said. Industry analysts contacted by Reuters said such a charge could amount to a loss of hundreds of millions, if not billions, of dollars. Intel declined to comment on such "hypothetical scenarios or market speculation." It said the lead customer for 18A has long been Intel itself, and it aims to ramp production of its "Panther Lake" laptop chips later in 2025, which it called the most advanced processors ever designed and manufactured in the United States. Persuading outside clients to use Intel's factories remains key to its future. As its 18A fabrication process faced delays, rival TSMC's N2 technology has been on track for production. Tan's preliminary answer to this challenge: focus more resources on 14A, a next-generation chipmaking process where Intel expects to have advantages over Taiwan's TSMC, the two sources said. The move is part of a play for big customers like Apple and Nvidia, which currently pay TSMC to manufacture their chips. Tan has tasked the company with teeing up options for discussion with Intel's board when it meets as early as this month, including whether to stop marketing 18A to new clients, one of the two sources said. The board might not reach a decision on 18A until a subsequent autumn meeting in light of the matter's complexity and the enormous money at stake, the person said. Intel declined to comment on what it called rumor. In a statement, it said: "Lip-Bu and the executive team are committed to strengthening our roadmap, building trust with our customers, and improving our financial position for the future. We have identified clear areas of focus and will take actions needed to turn the business around." Last year was Intel's first unprofitable year since 1986. It posted a net loss attributable to the company of $18.8 billion for 2024. The Intel chief executive's deliberations show the enormous risks - and costs - under consideration to move the storied U.S. chipmaker back onto solid footing. Like Gelsinger, Tan inherited a company that had lost its manufacturing edge and fell behind on crucial technology waves of the past two decades: mobile computing and artificial intelligence. The company is targeting high-volume production later this year for 18A with its internal chips, which are widely expected to arrive ahead of external customer orders. Meanwhile, delivering 14A in time to win major contracts is by no means certain, and Intel could choose to stick with its existing plans for 18A, one of the sources said. Intel is tailoring 14A to key clients' needs to make it successful, the company said. AMAZON AND MICROSOFT ON 18A Tan's review of whether to focus clients on 14A involves the contract chipmaking portion of Intel, or foundry, which makes chips for external customers. Regardless of a board decision, Intel will make chips via 18A in cases where its plans are already in motion, the people familiar with the matter said. This includes using 18A for Intel's in-house chips that it already designed for that manufacturing process, the people said. Intel also will produce a relatively small volume of chips that it has guaranteed for and Microsoft via 18A, with deadlines that make it unrealistic to wait for the development of 14A. Amazon and Microsoft did not immediately comment on the matter. Intel said it will deliver on its customer commitments. Tan's overall strategy for Intel remains nascent. So far, he has updated his leadership team, bringing in new engineering talent, and he has worked to shrink what he considered bloated and slow-moving middle management. Shifting away from selling 18A to foundry customers would represent one of his biggest moves yet. The 18A manufacturing process includes a novel method of delivering energy to chips and a new type of transistor. Together, these enhancements were meant to let Intel match or exceed TSMC's capabilities, Intel executives have previously said. However, according to some industry analysts, the 18A process is roughly equivalent to TSMC's so-called N3 manufacturing technology, which went into high-volume production in late 2022. If Intel follows Tan's lead, the company would focus its foundry employees, design partners and new customers on 14A, where it hopes for a better chance to compete against TSMC.
Mint
35 minutes ago
- Mint
Indian economy to grow 6.4-6.7% in FY26 amid geopolitical risks, says CII President, calls for 3-tier GST structure
The Indian economy is estimated to grow 6.4-6.7% in the current financial year due to strong domestic demand amid risks posed by geopolitical uncertainty, the newly appointed CII President Rajiv Memani said during a press conference on Thursday. He further advocated for a three-tier goods and services tax (GST) rate structure, with essential goods attracting 5 per cent, luxury and sin goods at 28%, and the rest of the items in the 12-18% range. The current GST system is a four-tier tax structure with 5%, 12%, 18% and 28% slabs. Luxury and demerit goods fall under the highest slab of 28%, while packed food and essential items are charged the lowest 5% slab. Speaking on India's growth, Memani said that factors such as a good monsoon forecast, liquidity boost due to the Reserve Bank of India's (RBI) cash reserve ratio (CRR) cut, and interest rate reduction will help in the economic growth of the country. He highlighted risks for the Indian economy and said, 'a lot of these relate to external trade risk. I think a lot of them have been factored in, and also there are some upside. So hopefully they should get balanced out... From a CII standpoint, we're looking at 6.4-6.7 per cent growth.' However, Memani assured that these risks to growth are evenly balanced, and geopolitical uncertainty poses downside risks whereas strong domestic demand is an upside. According to the RBI forecast, the economy is estimated to grow 6.5% in FY26. In June, the central bank slashed the CRR by 100 basis points, which is expected to boost liquidity by bringing ₹ 2.5 lakh crore to the banking system. Meanwhile, the benchmark interest rate was cut 50 basis points to 5.5 per cent. Memani emphasised that GST requires rate rationalisation. 'Under GST 2.0, we have called for rate rationalisation, especially on products that are consumed by lower-income segments. Several products taxed at 28 per cent, including cement, should also be reduced... we believe this will boost economic activity,' he said. Memani also urged simplifying the GST framework and emphasised the importance of building a national consensus on goods such as petroleum, electricity, real estate, and potable alcohol in GST. He further mentioned that India needs to capitalise on the current opportunities, 'it will need to undertake more economic reforms, win the AI race and possible impact on jobs, grow high-end and employment intensive manufacturing and continuing focus on Ease of Doing Business.'
