India's 40-Day Oil Buffer Plan Takes Shape with Five New SPR Projects; Check Details

India is planning a major expansion of its strategic petroleum reserve (SPR) network, with five new projects proposed across Chandikhol in Odisha, Bina in Madhya Pradesh, Bikaner in Rajasthan and Mangaluru and Padur in Karnataka, according to a report by Business Standard

The expansion could raise India's strategic crude oil storage cover to as much as 40 days of consumption, up from the current nine and a half days, depending on oil demand levels once the projects are completed, the report said.

The government is targeting the award of the construction contract for the Chandikhol facility by the end of the current financial year, FY27. Detailed feasibility reports for the proposed reserves at Bina and Bikaner are also being prepared, pending required approvals.

The Chandikhol facility is expected to have a storage capacity of about 4 million tonnes. The Bina and Bikaner reserves are planned at 5 million tonnes and 5.625 million tonnes, respectively. If developed, the Bikaner facility would become India's first strategic oil storage site based on salt cavern technology, according to the report.

"The government is committed to expanding the capacity of oil reserves in the country. Although plans to add more storage have been under discussion for some time, the projects are now moving forward at a faster pace," a source cited by the publication said.

Existing Facilities and New Additions

India currently operates three strategic oil storage facilities, located at Mangaluru with 1.5 million tonnes capacity and Padur with 2.5 million tonnes, both in Karnataka and Visakhapatnam with 1.33 million tonnes in Andhra Pradesh. These rock cavern-based facilities are owned and operated by Indian Strategic Petroleum Reserves Limited, a special-purpose company set up by the government to maintain emergency crude oil stocks during wars, geopolitical disruptions and major supply shocks.

The government has also asked state-run Oil and Natural Gas Corporation to develop a new underground strategic reserve of 1.75 million tonnes at Mangaluru. This would mark the first such facility in India developed by a state-owned oil company, the report said.

Separately, the expansion of the Padur facility by an additional 2.5 million tonnes is already underway through a public-private partnership model. Megha Engineering & Infrastructures secured the engineering, procurement and construction contract for the project last year, according to the report.

The West Asia crisis has heightened concerns over India's preparedness for global oil supply disruptions. The International Energy Agency recommends that countries maintain emergency oil stocks equivalent to at least 90 days of net imports. India's current storage capacity covers only about 9.5 days. In comparison, China holds reserves equivalent to roughly 90 days, while Japan maintains stocks of around 200 days, the report said.

Budget documents cited in the report show that India has consistently underspent on strategic petroleum reserves. The government allocated ₹5,876 crore for strategic oil reserves in the FY26 Budget, but only ₹1,039 crore was utilised during the year, based on revised estimates. The allocation for FY27 has been reduced sharply to ₹200 crore.