International Energy Agency (IEA)

Subject – IR

Context – ‘India invited to become fulltime IEA member’

Concept –

International Energy Agency (IEA) has invited India, the world’s third-largest energy consumer, to become its full-time member — a proposal, if accepted, will require New Delhi to raise strategic oil reserves to 90 days’ requirement.
- India’s current strategic oil reserves equal 9.5 days of its requirement.
In March 2017, India became an associate member of the agency.
To become member a candidate country must demonstrate that it has:
- 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.
- A demand restraint programme to reduce national oil consumption by up to 10%.
- Legislation and organisation to operate the Co-ordinated Emergency Response Measures (CERM) on a national basis.
- Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request.
- Measures in place to ensure the capability of contributing its share of an IEA collective action.
Headquarters (Secretariat): Paris, France.

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