The Indian Strategic Petroleum Reserves Limited (ISPRL), a company set up to build strategic crude oil reserves, is at last showing some seriousness about its business model. ISPRL has reportedly approached SBI Caps to work out a business model for the company. India’s leading investment banker will work out a business model for funding the crude oil for the company.
ISPRL is building underground rock caverns at Vizag, Padur and Mangalore in two phases. The phase-I of the Indian strategic crude oil reserve programme involving construction of the storage units of 5.33 million metric tonnes (MMT) will be completed during the year and an amount of Rs 23,500 crore would be required to fully utilize the storage capacity being created in the first phase. However, the big question now in front of ISPRL is how this amount will be funded and SBI Caps has been roped in to work out funding options for the company.