NEW DELHI: India is looking to expand its strategic petroleum reserves with new facilities at Bina in Madhya Pradesh and Bikaner in Rajasthan, besides adding storage capacity at Mangalore, to strengthen the country’s energy security against supply disruptions.According to a parliamentary committee report, govt-owned Indian Strategic Petroleum Reserves Ltd (ISPRL), a special purpose vehicle, has completed the feasibility study for the Bikaner caverns and is in the process of finalising it. A pre-feasibility study for Bina has also been completed, with a detailed feasibility report to be initiated soon.This is in addition to the 1.7 million tonne (MT) storage facility being planned at Mangalore, adjacent to its existing Phase-I facility. ISPRL has completed a feasibility study, acquired 155 acres of land and is in the process of obtaining special economic zone (SEZ) notification for 66 acres. The facility will be built by Oil and Natural Gas Corporation.India currently has strategic oil reserves of 5.3 MT, developed under Phase-I at Mangalore and Padur in Karnataka and Visakhapatnam in Andhra Pradesh to safeguard against global supply disruptions. The capacity is estimated to meet about 9.5 days of the country’s crude oil requirement, with the reserves managed by ISPRL.The govt is also adding 6.5 MT of reserves under its Phase-II expansion plan – 2.5 MT at Padur and 4 MT at Chandikhol in Odisha.It approved the two projects in July 2021. At Chandikhol, 400 acres of land have been acquired and the request for proposal is under review. At Padur-II, ISPRL signed the concessionaire agreement with the selected bidder in Oct 2025, while financial closure is in progress.The developments have been flagged in the latest action-taken report of the parliamentary standing committee on petroleum and natural gas, which has urged the ministry to ensure timely completion of the projects and work towards the global benchmark of maintaining 90 days of crude oil storage.The committee urged the petroleum ministry to ensure the finalisation of RFPs, SEZ notification and financial closures within the scheduled timelines, while ensuring optimal utilisation of funds, besides maintaining global standard of 90 days of crude oil storage within the country as soon as feasible.The committee also asked the ministry and oil companies to explore more cavern sites in areas with suitable geological conditions, citing the need to strengthen India’s energy security amid global geopolitical uncertainties.
