Prime Minister Narendra Modi on Monday said New Delhi is in talks with global partners to secure safe passage for all India-bound vessels carrying essential commodities, while comparing the geopolitical crisis to the covid pandemic outbreak. Speaking in the Lok Sabha, the prime minister said India will overcome the crisis as it did during the pandemic, adding that the government is working to develop an additional 6.5 million tonnes of strategic petroleum reserves.
“The government is in constant contact with suppliers from different countries. Efforts are being made to ensure the supply of oil and gas from wherever possible. The government of India is keeping a close watch on shipping routes in the Gulf and surrounding areas. Our aim is to ensure that ships carrying oil, gas, fertilizers, and other essential goods reach India safely. We are in continuous dialogue with all our global partners to keep our maritime corridors secure,” Modi said, while adding that as a result of these efforts, “several” of India-bound ships stuck in the Strait of Hormuz have recently reached India safely.
So far, a total of two India-flagged LPG tankers have reached India after crossing the Strait of Hormuz, and two others are on the way after crossing it.
On the coal stock and power demand scenario, said that at present, all power plants in the country have adequate coal stocks and from power generation to power supply, all the involved systems are being continuously monitored, and renewable energy has also supported the preparedness.
At an inter-ministerial briefing later in the day, officials said the prime minister has been speaking to world leaders on the ongoing war in the West Asia region, including with the president of Iran Masoud Pezeshkian, wherein Modi conveyed Eid and Nowruz greetings. He expressed hope that this festive season brings peace, stability and prosperity to West Asia, said an official statement.
On the nearly 10 million Indians who live and work in Gulf countries, as well as the significant number of Indian crew members aboard commercial ships in those waters, Modi said: “India’s concerns are naturally greater, and therefore, it is essential that a united and unanimous voice goes out to the world from India’s Parliament on this crisis.”
Noting that over the past decade India has also prioritized crude oil storage for times of crisis, Modi told the Parliament that India has a strategic petroleum reserve of more than 5.3 million metric tonnes, and work is underway to expand it to over 6.5 million metric tonnes. “The reserves maintained by our oil companies are separate. In the past 11 years, our refining capacity has also increased significantly.”
The statement gains significance as India imports about 90% of its oil requirement, and about 40% of its imports came through the Strait of Hormuz prior to the war. On Monday, US president Donald Trump announced a five-day pause on military strikes against Iranian power infrastructure and energy assets based on “in depth, detailed and constructive conversations” which will continue through the week.
After Trump’s announcement on social media, crude prices slumped around 7%. The April contract of the benchmark on the Intercontinental Exchange was trading at $103.66 per barrel, lower by 7.60% from its previous close. Similarly, the April contract of the West Texas Intermediate on the NYMEX fell 6.97% to $91.38 per barrel.
Answering a media query on Trump’s announcement, external affairs ministry spokesperson Randhir Jaiswal said at the briefing that New Delhi is keeping a close watch.
Prime Minister Modi also tried to allay concerns over fertilizer availability in the country for the upcoming kharif season and coal to meet the projected surge in power demand in the upcoming summers.
“A major question is what impact the war will have on agriculture. Our farmers have filled our food grain reserves, so India has sufficient food stocks. Our effort is also to ensure proper sowing for the Kharif season,” he said.
Currently, a total of 22 ships are stranded on the western side of the Strait, including six vessels carrying , one ship carrying liquefied natural gas, and four carrying crude oil. A shipping ministry official said at the inter-ministerial briefing that the 22 Indian-flagged vessels have around 600 Indian seafarers currently in the western Persian Gulf region.
According to the shipping ministry, two Indian flagged LPG carriers—Jag Vasant and Pine Gas—carrying 92,612.59 metric tonne of LPG, have transited through the Strait of Hormuz. These vessels are likely to reach India ports between 26 and 28 March.