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India seeks private investors for $910 million oil reserve

India is seeking private investors for a $910 million oil reserve site that would lift its strategic capacity by 80%. Its trade deficit widened on festive import demand, and the US has promised India lower tariffs than its peers.

Illustration: Seen from straight above, round storage tanks of a refinery sit in neat rows beside a tangle of pipes and a dark tanker at a pier.
Illustration

Private investors are being sought to build and run India's largest strategic petroleum reserve site, a storage facility for crude oil. The project is estimated to cost $910 million and would raise the country's strategic capacity by 80%, according to tender documents.

The site is planned at Chandikhol in Odisha, an eastern state on the Bay of Bengal, and could hold up to 4 million tons of crude. To attract developers, the government would offer a grant of $546 million, or 51.4 billion Indian rupees.

Oil reserve cost and government grant

  • Estimated project cost910 million $
  • Government grant546 million $

Figures from tender documents.

Separately, India's trade deficit widened as demand for imports rose during the festive season. In trade talks, the United States has assured India of lower tariffs than those applied to its peers.

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