New Delhi/Bhubaneswar: The Centre is expanding the country’s strategic petroleum reserves (SPR) to strengthen energy security and reduce dependence on imported crude oil.
While SPR facilities with a total capacity of 5.33 million metric tonnes (MMT) have been set up at Vishakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT), plans are afoot to add 6.5 million metric tonnes (MMT) of crude oil storage at Chandikhol in Odisha and Padur in Karnataka under Phase-II of the Indian Strategic Petroleum Reserve Limited (ISPRL) programme.
Both projects are to be developed under the Public Private Partnership (PPP) mode. The Chandikhol facility is being planned to store 4 MMT crude oil while the capacity of Padur facility will be of 2.5 MMT.
However, the respective state government are yet to allocate land for the proposed caverns, Ministry of Petroleum and Natural Gas informed the Parliamentary Standing Committee in a written submission.
The report further noted that the Ministry has allocated Rs 100 crore for cavern construction under Phase-II and Rs 235 crore for land acquisition in 2025–26. An additional Rs 179 crore has been allocated for the operation and maintenance of existing reserves, compared to Rs 220.04 crore in 2024–25.
The Committee has urged the Ministry to coordinate with state governments and the expedite the land transfer process to avoid delays in the implementation of Phase-II, the ET reported.
To ensure security of crude supplies and to mitigate the risk of dependence on crude oil from single region, Indian Oil Public Sector Undertakings (PSUs) have diversified their crude basket and are procuring crude from countries located at various geographical locations, including Middle East, Africa, North America, South America. Further, Government has already diversified the import of LNG by adding Australia, USA and UAE as sourcing destinations. India has also signed various long term agreements for procurement of LNG for ensuring uninterrupted supplies and safeguarding from price volatility, Union Minister Suresh Gopi had told the Lok Sabha on March 20.
