The government plans to expand its strategic petroleum reserve (SPR) network by establishing six new underground oil storage sites to bolster energy security amid global uncertainties. The government has tasked Engineers India (EIL) with preparing detailed feasibility reports (DFRs) for proposed SPRs, including sites in the Mangalore SEZ (Karnataka) and salt caverns in Bikaner (Rajasthan).

The initiative aims to boost India’s reserve capacity to 90 days of net crude imports, aligning with International Energy Agency (IEA) norms. India currently holds 5.33 million tonne (MT) of emergency crude in Vishakhapatnam (1.33 MT), Mangaluru (1.5 MT), and Padur (2.5 MT). A second phase, with 6.5 MT of additional capacity, is underway in Odisha and Karnataka under a public-private partnership model.

The estimated cost to build one MT of SPR capacity is Rs 2,500 crore. Experts stress that while energy transition is ongoing, petroleum demand will remain high for at least 15 years. The government is also seeking foreign partnerships to finance the high capital expenditure.