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What is the News?
The International Energy Agency (IEA) has invited India, the world’s third-largest energy consumer, to become its full-time member. Currently, India is an associate member of IEA.
What will happen if India accepts the proposal of IEA?
If India accepts the proposal of IEA, then India needs to raise its strategic oil reserves to 90 days requirement. India’s current strategic oil reserves equal 9.5 days of its requirement.
About International Energy Agency
IEA was founded in 1974 by industrialised countries – within the framework of the Organisation for Economic Co-operation and Development (OECD) – in response to the oil embargo.
Click Here to Read more about IEA
Membership and Eligibility: IEA is made up of 30 member countries and eight associate nations.
What are the criteria for IEA Membership?
A candidate country to the IEA must be a member country of the OECD. In addition, it must demonstrate several requirements. These are:
Firstly, Crude oil and/or product reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply,
Secondly, a demand restraint programme to reduce national oil consumption by up to 10%,
Thirdly, Legislation and organisation to operate the Coordinated Emergency Response Measures (CERM) on a national basis,
Fourthly, Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request,
Lastly, measures are in place to ensure the capability of contributing its share of an IEA collective action.
Source: This post is based on the following articles:
- “International Energy Agency invites India to become full-time member: Hardeep Singh Puri” published in TOI on 11th October 2021.
- ‘India invited to become full-time IEA member’ published in The Hindu on 11th October 2021.
