The Indian Strategic Petroleum Reserves (ISPRL) is considering the establishment of a new strategic crude oil reserve in Madhya Pradesh to ensure a reliable supply for refineries in northern India during emergencies. This initiative aims to enhance the country’s energy security as domestic consumption of petroleum products continues to rise.
ISPRL has enlisted Engineers India Limited (EIL) to conduct a pre-feasibility study to evaluate the potential for setting up the reserve in Bina, Madhya Pradesh. According to sources familiar with the plan, the location is considered strategic due to its proximity to inland refineries, offering a key advantage over existing reserves, which are located along India’s coastline.
The study is expected to take three to four months to complete, with findings likely to shape the future of India’s strategic oil infrastructure.
Currently, India’s operational strategic petroleum reserves (SPRs) are located at Visakhapatnam in Andhra Pradesh, and Mangaluru and Padur in Karnataka. Together, these facilities have a combined storage capacity of 5.3 million tonnes. However, expansion plans are already underway. Once completed, new reserves at Padur and in Chandikhol, Odisha, will bring the total capacity to 6.5 million tonnes.
Strategic petroleum reserves play a vital role in ensuring the continuity of oil supply to India’s refineries, especially in times of crisis. As the country’s energy needs grow, the expansion of these reserves has become a pressing priority. Currently, India’s reserves remain modest compared to global leaders such as the United States and China, both of which maintain far larger stockpiles.
This proposed addition in Madhya Pradesh is part of India’s broader strategy to safeguard its energy infrastructure, and the outcome of EIL’s study will determine the next steps in securing the nation’s oil supply for the future.