FCC

India Plans Three More Oil Reserves To Reach 90 Day Buffer

2025-07-04

India, which imports more than 80 per cent of its crude, is mapping out three additional strategic petroleum reserves to lift its emergency stockpile to the 90 day level required for eventual membership of the International Energy Agency.

L. R. Jain, chief executive of Indian Strategic Petroleum Reserve Ltd, said Engineers India Ltd is carrying out feasibility studies for new depots at Bikaner in Rajasthan, Mangalore in Karnataka and Bina in Madhya Pradesh. Cabinet approval will be sought once the reports are complete.

The Bikaner project would use salt caverns to hold about 5.2–5.3 million tonnes of crude, while a new site at Mangalore is envisaged at 1.75 million tonnes. Capacity at Bina is still being finalised.

These proposals come on top of two federally cleared schemes: a 2.5 million tonne extension at Padur in Karnataka and a 4 million tonne facility at Chandikhol in Odisha. India already operates three reserves at Mangalore, Padur and Visakhapatnam with combined storage of 5.33 million tonnes, sufficient for roughly ten days of national demand.

“Building extra capacity means that, in any supply shock, we shall be better prepared,” Jain said, adding that rising domestic fuel consumption also warrants extra storage. Current commercial stocks and in transit supplies give the country cover for about 75 days.

India has reshaped its reserve policy to mirror models in Japan and South Korea, allowing private firms to lease space and trade stored crude, a move expected to attract oil majors and reduce the fiscal burden on the state.