NEW DELHI, Jan 7: The Indian government on Wednesday approved the construction of strategic oil reserve facilities to provide 15 days of emergency supplies, Parliamentary Affairs Minister Sushma Swaraj announced.

The facilities, to be fashioned after United States storage depots, will be built at a cost of 350 million dollars at two places along India's west coast - Mangalore and the eastern port city of Vishakapatnam, Swaraj said.

"With the ongoing liberalisation in the petroleum sector, oil security is a must. Earlier it (the sector) was under the public sector (state control) and hence no need was felt for such reserves," she said.

Petroleum Minister Ram Naik said the oil stockpile would be stored in rock caverns. "They will be built on the lines of those maintained by the US and Japan as an insurance against supply disruptions," Naik said.

"India, which imports 70 percent of its 105 million tonne crude oil requirement every year, will be the first country in South Asia to construct strategic oil reserves.

"Funding of the construction and maintenance of the oil reserves will be firmed up by the petroleum ministry in discussions with the ministry of finance," Naik said.

The reserves would be sufficient to cover emergency oil needs for 15 days, he added. Last year, after the US-led war against Iraq created supply uncertainties, India decided in principle to create 45-days worth of strategic oil reserve facilities in stages.

Naik said India kept 19 days worth of oil reserves at domestic refineries totalling 5.7 million tonnes for day-to-day needs. "Besides, the country also has tankages to provide for 45 days cover of petroleum products," the petroleum minister said.-AFP