India to build two more strategic petroleum reserves at ₹14,527 crore under PPP model
New Delhi: India is planning to build two additional commercial-cum-strategic petroleum reserve facilities under a public-private partnership (PPP) model. The estimated project cost is ₹14,527 crore. The move is part of the government’s push to strengthen the country’s energy security and expand crude oil storage capacity.
Informing the Lok Sabha, Suresh Gopi, Minister of State for the Union Petroleum Ministry, said the government’s viability gap funding for the project has been capped at 60% of the total project cost. Viability gap funding refers to government assistance provided to make essential, economically beneficial infrastructure projects commercially feasible.
The proposed Phase-2 facilities will build on Phase-I of the SPR program. Under Phase-I, India created a cumulative capacity of 5.33 MMT of crude across three locations. These include Vishakhapatnam with 1.33 MMT, Mangaluru with 1.5 MMT, and Padur with 2.5 MMT.
Strategic petroleum reserves serve as a buffer during global supply disruptions and volatile crude prices. By adopting the PPP model for Phase-2, the government aims to attract private investment while retaining strategic control over the reserves.
