India’s strategic petroleum reserve programme includes underground crude oil storage facilities at Visakhapatnam in Andhra Pradesh, Mangaluru in Karnataka, and Padur in Tamil Nadu. The Centre reviewed the Chandikhole project in Jajpur district of Odisha on 28 April 2026, with the facility planned for a storage capacity of 4 million metric tonnes.
Strategic Petroleum Reserve System
Strategic petroleum reserves are emergency stockpiles of crude oil maintained for supply security during disruptions in international oil markets. India’s operational strategic petroleum reserve capacity stood at 5.33 million metric tonnes as of March 2026.
- Visakhapatnam has a capacity of 1.33 million metric tonnes.
- Mangaluru has a capacity of 1.5 million metric tonnes.
- Padur has a capacity of 2.5 million metric tonnes.
When fully filled, the Phase I facilities can provide about 9.5 days of net crude import cover. As of 24 March 2026, the reserves held around 3.37 million metric tonnes of crude, which was about 64% of capacity.
Chandikhole and Padur Expansion
The Chandikhole project was approved by the Union Cabinet on 27 June 2018 at an estimated cost of about Rs 8,743 crore. The project is expected to create more than 5,000 jobs and is part of the second phase of strategic reserve expansion. In July 2021, the government approved two additional commercial-cum-strategic facilities totalling 6.5 million metric tonnes, comprising 4 million metric tonnes at Chandikhole and 2.5 million metric tonnes at Padur in Karnataka. Work for construction at the Padur Phase II project was awarded on 1 October 2025.
Institutional Framework
Indian Strategic Petroleum Reserves Ltd (ISPRL) is the public sector company associated with the development and operation of India’s strategic petroleum reserve facilities. The review meeting in New Delhi involved Atul Gupta, Deputy CEO of ISPRL.
Parliamentary Oversight
A parliamentary committee on petroleum and natural gas urged the Central government in March 2026 to accelerate strategic petroleum reserve expansion towards a 90-day crude oil storage benchmark. Delays in land allocation from the Odisha government have affected the Chandikhole project since 2019.
Last Modified: April 29, 2026