Why in News
Strategic Petroleum Reserves (SPRs) of India currently have an active storage capacity of 5.33 Million Metric Tonnes (MMT) of crude oil, providing approximately 9.5 days of emergency fuel cover. To move closer to the International Energy Agency’s (IEA) 90-day benchmark, India is implementing Phase II to add 6.5 MMT of capacity through a Public-Private Partnership (PPP) model, including a first-ever private-sector commercial-cum-strategic reserve.
About India’s Strategic Petroleum Reserves — Key Facts for Prelims
Managing Body
- ISPRL — Indian Strategic Petroleum Reserve Limited.
- Type: Special Purpose Vehicle (SPV) under the Ministry of Petroleum and Natural Gas.
- Established in 2004.
Storage Method
Crude oil is stored in underground rock caverns along India’s coastlines — safer than overground tanks against natural disasters and attacks.
Phase I — Current Capacity (5.33 MMT)
| Location | State | Capacity |
|---|---|---|
| Padur | Karnataka | 2.50 MMT (largest) |
| Mangaluru | Karnataka | 1.50 MMT |
| Visakhapatnam | Andhra Pradesh | 1.33 MMT |
| Total Phase I | 5.33 MMT (~9.5 days) |
Phase II Expansion — 6.5 MMT (PPP Model)
| Location | State | Capacity | Note |
|---|---|---|---|
| Chandikhol | Odisha | 4.0 MMT | Brand new underground cavern |
| Padur Phase II | Karnataka | 2.5 MMT | Expansion of existing site |
| Total Phase II | 6.5 MMT |
- Padur Phase II mandate awarded to Megha Engineering & Infrastructures Ltd — India’s first private-sector commercial-cum-strategic reserve.
- Total post-Phase II capacity: 11.83 MMT (~22 days cover).
IEA Benchmark
The International Energy Agency (IEA) recommends member countries maintain a 90-day strategic petroleum reserve. India’s current cover is only ~9.5 days — highlighting the urgency of Phase II expansion.
Why SPRs Matter — Exam Link
- Protects against global oil supply shocks (e.g., wars, sanctions, OPEC cuts).
- Supports energy security as India imports ~85% of its crude oil needs.
- Part of India’s Atmanirbhar Bharat energy independence strategy.
Quick Revision Table
| Fact | Detail |
|---|---|
| Phase I total capacity | 5.33 MMT |
| Emergency days cover (Phase I) | ~9.5 days |
| Managing body | ISPRL (SPV under Min. of Petroleum & Natural Gas) |
| Largest Phase I site | Padur, Karnataka (2.50 MMT) |
| Phase II total addition | 6.5 MMT |
| New Phase II site | Chandikhol, Odisha (4.0 MMT) |
| IEA recommended benchmark | 90 days |
| Post-Phase II total capacity | 11.83 MMT (~22 days) |
| Storage method | Underground rock caverns |
| Padur Phase II operator | Megha Engineering & Infrastructures Ltd |
Trap / Confusing Points
| Common Confusion | Correct Fact |
|---|---|
| ISPRL is under Ministry of Finance | ❌ Under Ministry of Petroleum and Natural Gas |
| All SPR sites are in Karnataka | ❌ Phase I: 2 in Karnataka, 1 in Andhra Pradesh; Phase II adds Odisha |
| India has 90 days of reserve cover | ❌ Current cover is only ~9.5 days; 90 days is the IEA benchmark |
| ISPRL is a ministry or department | ❌ It is a Special Purpose Vehicle (SPV) |
| Chandikhol is an existing Phase I site | ❌ Chandikhol is a new Phase II site in Odisha |
| Largest site is Visakhapatnam | ❌ Largest is Padur, Karnataka at 2.50 MMT |
| SPRs stored in overground tanks | ❌ Stored in underground rock caverns |
Practice MCQs
1. India’s Strategic Petroleum Reserves are managed by:
a. Oil India Limited
b. ONGC
c. ISPRL
d. Petroleum and Natural Gas Regulatory Board
Ans: C
ISPRL (Indian Strategic Petroleum Reserve Limited) is the Special Purpose Vehicle (SPV) under the Ministry of Petroleum and Natural Gas that manages India’s SPRs.
2. Which of the following is the largest Strategic Petroleum Reserve site in India (Phase I)?
a. Visakhapatnam
b. Mangaluru
c. Chandikhol
d. Padur
Ans: D
Padur, Karnataka holds the largest Phase I SPR capacity at 2.50 MMT. Note: Chandikhol is a Phase II (new) site, not Phase I.
3. India’s current Strategic Petroleum Reserves provide approximately how many days of emergency fuel cover?
a. 90 days
b. 30 days
c. 22 days
d. 9.5 days
Ans: D
The Phase I capacity of 5.33 MMT gives approximately 9.5 days of cover. 90 days is the IEA benchmark, and 22 days would be the cover after Phase II completion.
4. Under Phase II, which new location has been selected for a 4.0 MMT underground SPR?
a. Bhatinda, Punjab
b. Chandikhol, Odisha
c. Kochi, Kerala
d. Chennai, Tamil Nadu
Ans: B
Chandikhol, Odisha is the brand-new Phase II site with a planned capacity of 4.0 MMT — the largest single site in the expanded SPR network.
5. India’s Strategic Petroleum Reserves are stored in:
a. Overground metal tanks at ports
b. Underground rock caverns
c. Floating storage units at sea
d. Pressurised cylinders at refineries
Ans: B
India’s SPRs are stored in underground rock caverns along the country’s coastlines — providing protection against natural disasters, sabotage, and fire hazards compared to overground tanks.
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