India is moving ahead with the second phase of its strategic petroleum reserves programme, with an estimated investment of Rs 14,527 crore. The expansion is planned under a public-private partnership model, highlighting a push to combine public energy-security goals with private sector participation.
The new phase will add 6.5 million tonnes of crude oil storage capacity. Two fresh facilities are planned in Odisha and Karnataka, extending the country’s strategic reserve network and increasing its ability to hold emergency crude supplies.
Strategic petroleum reserves are seen as a key buffer against supply disruptions and price volatility in global energy markets. By adding more storage, India aims to strengthen its preparedness and improve long-term energy resilience as oil demand and import dependence remain important policy concerns.
Alongside the Phase-II rollout, the government is continuing to review additional locations for future reserve capacity. That suggests the broader strategic oil storage programme may keep expanding beyond the two newly identified sites if suitable options are found.
