India Launches Rs 14,527 cr Phase‑II Strategic Oil Reserve Expansion

India announced a Phase‑II expansion of its strategic petroleum reserve programme at an estimated cost of Rs 14,527 crore. The project will add 6.5 million tonnes of combined commercial‑cumulative storage capacity through two new caverns—about 4 million tonnes in Odisha and 2.5 million tonnes in Karnataka—under a public‑private partnership model with government viability‑gap funding capped at 60 % of total costs.

The Phase‑I facilities, operated by Indian Strategic Petroleum Reserve Ltd, already provide 5.33 million tonnes across Visakhapatnam, Mangaluru and Padur. The new Phase‑II sites follow a similar approach, with the government continuously assessing additional locations. Indian Strategic Petroleum Reserve Ltd also signed an agreement with Abu Dhabi National Oil Company, allowing ADNOC to use a 750,000‑tonne cavern at Mangaluru and establishing a non‑binding MOU for strategic collaboration. The expansion aims to strengthen India’s energy security, diversify its crude sourcing—from 27 to 41 supplying countries—and reduce supply‑risk exposure.