India Phase-II SPR expansion
Analysis based on 13 articles · First reported Jul 23, 2026 · Last updated Aug 03, 2026
The expansion of strategic petroleum reserves enhances India's energy security and reduces vulnerability to supply disruptions, which is positive for the Indian economy and oil-dependent industries. The PPP model with government viability gap funding may attract private investment in energy infrastructure, potentially benefiting related sectors.
India announced plans to develop the second phase of its strategic petroleum reserve (SPR) programme at an estimated cost of Rs 14,527 crore under a public-private partnership (PPP) model, with government viability gap funding capped at 60% of the total project cost. The Phase-II expansion, approved in July 2021, will add 6.5 million tonnes of commercial-cum-strategic crude oil storage capacity through two facilities in India — Odisha (4 million tonnes) and India — Karnataka (2.5 million tonnes). Minister of State for Petroleum and Natural Gas Suresh Gopi stated this in a written reply to the India — Lok Sabha. Under Phase-I, India through United States — Strategic Petroleum Reserve (ISPRL) established facilities with a total capacity of 5.33 million tonnes at India — Visakhapatnam, India — Mangaluru, and India — Padur, commissioned between 2016 and 2018. ISPRL has also entered into an agreement with Abu Dhabi National Oil Company (ADNOC) permitting the UAE energy company to use a 750,000 tonne cavern at India — Mangaluru and signed a non-binding MoU on strategic collaboration. India has diversified its crude oil sourcing from 27 to 41 countries and LNG sourcing from 6 to 15 countries to strengthen energy security.
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