India is actively pursuing plans to establish two new strategic petroleum reserve (SPR) facilities, significantly enhancing its energy security. The proposed sites are located in Bina, Madhya Pradesh, and Bikaner, Rajasthan, as detailed in a recent parliamentary committee report.
Currently, India maintains 5.3 million metric tonnes (MMT) of strategic oil reserves, housed in facilities developed under Phase-I at Mangalore and Padur in Karnataka, and Visakhapatnam in Andhra Pradesh. These existing reserves are crucial for safeguarding against global supply disruptions.
New Facilities Under Consideration
The Standing Committee on Petroleum & Natural Gas confirmed that feasibility studies for the Bikaner facility have been completed and are in the finalization phase. For the Bina facility, a pre-feasibility study has concluded, with the initiation of a detailed feasibility report (DFR) soon to follow. The Ministry of Petroleum told the committee that it continuously evaluates new sites and expansion opportunities based on technical, commercial, and strategic factors.
Expanding Existing Capacity
Beyond the new proposals, the government is already progressing with the expansion of strategic oil storage under Phase-II. This includes two additional reserves approved in July 2021, with a combined capacity of 6.5 MMT:
- Chandikhol, Odisha: 4 MMT capacity. Land acquisition for 400 acres is complete, and the Request for Proposal (RFP) is under review before being floated.
- Padur-II, Karnataka: 2.5 MMT capacity. The concessionaire agreement between Indian Strategic Petroleum Reserves Ltd (ISPRL) and the selected bidder was signed on October 1, 2025, with financial closure currently in progress.
Furthermore, ISPRL has completed a feasibility study for an additional 1.75 MMT of storage at Mangalore, adjacent to the existing Phase-I facility. Land acquisition for 155 acres has been finalized, and the process to notify another 66 acres as part of a special economic zone (SEZ) is ongoing.
Push for 90-Day Oil Storage
The parliamentary committee has urged the government to expedite the completion of pending RFPs, SEZ notifications, and financial closures within scheduled timelines to ensure optimal fund utilization. The committee also stressed the importance of working towards the global standard of maintaining 90 days of crude oil storage. This push for increased fuel security has gained urgency following recent disruptions to supplies through critical routes like the Strait of Hormuz.