India is actively exploring the construction of three new strategic oil reserves to enhance its emergency stockpile and safeguard the nation’s energy security. The initiative is being spearheaded by Indian Strategic Petroleum Reserve Ltd (ISPRL), the state-run agency responsible for the country’s oil reserves.
L.R. Jain, CEO of ISPRL, confirmed that Engineers India Ltd is currently conducting feasibility studies for the proposed facilities. “In case of exigencies, we will be better prepared,” Jain mentioned, highlighting the growing need for resilient energy infrastructure.
Expanding the Network: Bikaner, Mangalore, and Bina
India, which imports over 80% of its crude oil, currently maintains strategic reserves at Mangalore, Padur, and Vizag, with a combined storage capacity of 5.33 million tonnes. These reserves are intended to buffer the country against global supply disruptions.
As part of the expansion plan:
*A new 5.2–5.3 million-tonne reserve is proposed at Bikaner, Rajasthan, using salt cavern technology.
*A 1.75-million-tonne facility is planned at Mangalore, Karnataka.
*An additional reserve will be built in Bina, Madhya Pradesh, though capacity is yet to be finalised.
*All three projects are subject to federal cabinet approval following the completion of feasibility studies.
Complementing Already Approved Projects
These proposed facilities will be in addition to two previously approved reserves:
*A 2.5 million-ton expansion at Padur, Karnataka
*A 4 million-ton facility at Chandikhol, Odisha
Together, these developments are part of India’s long-term strategy to build robust energy security amid volatile global oil markets.
Aligning with International Energy Standards
India’s strategic shift also aligns with its ambitions to join the International Energy Agency (IEA), which mandates member countries to maintain oil reserves equivalent to 90 days of consumption. Currently, India’s total oil storage capacity—including company-owned storage and oil in transit—can meet 75 days of fuel demand. “We are looking for 90 days of reserves,” Jain said, acknowledging that India’s rising fuel demand requires increased storage capabilities.
Private Sector Participation and Commercialisation
To accelerate development, India has also revised its policies to allow private sector participation in strategic reserves. Following the models of countries like Japan and South Korea, India now permits private lessees—mainly global oil majors—to store and trade crude oil in these facilities. This commercialisation strategy is designed to improve utilisation, attract investment, and ensure rapid access to oil in case of global crises.
Building a Resilient Energy Future
India’s push to expand its strategic oil reserves reflects a proactive approach to energy security, particularly as global uncertainties persist. As reported by msn.com, with rising domestic demand and a commitment to international standards, these new facilities will serve as a crucial pillar in India’s quest for a stable and self-reliant energy ecosystem.
