Home » Govt may complete work on Permude cavern by year end

Govt may complete work on Permude cavern by year end

Govt may complete work on Permude cavern by year end

Government has completed 95 per cent work on the Permude underground rock caverns for crude oil with a storage capacity of 2.5 million metric tonne of crude oil, media reports indicate.

The project was originally slated for completion in September last year, but it is expected to be completed by the end of 2013. From May, government would begin work on laying a 12-km pipeline from Thokur to Permude.

In May 2009, government began construction work on the underground rock caverns over 84 acre. But the project suffered from delay in awarding the ground work, securing explosive licence and various site-related problems such as a strike by MSEZÂ’s project displaced families (PDF) and an accident that left three dead resulted in the delay.

Of the three strategic petroleum reserves identified, as a contingency measure to meet sudden shortfall of crude oil, by the Planning Commission, work on underground rock caverns first began in Vishakapatnam, later in Permude and Padur (Udupi). Bogged down by delays, the Vishakapatnam project is likely to be ready by March next year.

In 2015, the government may complete work on rock caverns (2.5 million metric tonne) in Padur estimated at a cost of Rs 3,000 crore.

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