India develops new plan to protect its oil reserves

To minimise the impact of global fluctuations, India is building a strategic crude oil reserve facility on its southern and eastern coasts. But even as New Delhi is chalking out its roadmap for energy security, Islamabad dominates our security concerns.
"When we were on the brink of war with Pakistan, the question was asked -- how much quantity of petrol and diesel do we have? How many days will it last? We must store oil and have strategic reserves like the US," said Ram Naik, Petroleum Minister.

The government has decided to place India's oil reserves beyond the reach of Pakistan's Air Force. This line was adopted after the Defence Ministry raised its eyebrows at the concentration of oil installations on the west coast. The plan now is to diversify the locations to eastern and southern coasts despite the presence of four strong air bases in Gujarat alone.
The Defence Ministry still feels that:
-- Rs 70,000 crore worth of oil installations in Gujarat are a sitting duck.
-- The natural option for the new oil stockpile is now Vishakhapatnam on the east coast and Mangalore in the south -- both out of reach of the Pakistan Air Force.
-- In fact, the closeness to the border was the reason for Rajkot in Gujarat being dropped as a location.

Strategic experts agree that despite the ongoing Track II diplomacy between the two countries, prudence demands a wider spread.
"If Pakistan is to be factored in as an adversary, then there is a need to distribute assets out of the west coast," maintained Commodore C. Uday Bhaskar, Deputy Director, IDSA.
However, some others feel that the location of reserves should primarily be decided by the more practical consideration of where the refineries are located.
"If 50 % of our refining capacity is in the western part of the country and they come under threat, then there is not much point in having strategic reserves in other parts of the country where you may not have refining capacity," countered Dr Leena Srivastava, Member, National Security Advisory Board.

The government is not taking any chances considering the size and the strategic importance of the issue.
Indian Oil Corporation has been given the task of managing the reserves and the locations have been handpicked to maximise the geographical spread. With investment plans and logistic details firmly in place, the matter is likely to be cleared by the Cabinet soon.