The 1991 balance-of-payments crisis showed how exposed an oil-importing India was. The government decided in January 2004 to build strategic reserves, and ISPRL was incorporated that June to do it. Phase I — 5.33 million tonnes of crude in caverns at Visakhapatnam, Mangaluru and Padur — was commissioned between about 2015 and 2018.
Strategic Oil Reserves
Strategic Oil Reserves
Because India imports most of its oil, it keeps an emergency stockpile. Indian Strategic Petroleum Reserves Ltd (set up in 2004) built Phase I — 5.33 million tonnes of crude in underground rock caverns at Visakhapatnam, Mangaluru and Padur — commissioned between about 2015 and 2018. That is about 9.5 days of national demand; counting oil companies' own tanks, India's total storage capacity for crude and fuels was put at 74 days in 2021. Phase II — 6.5 MMT more at Chandikhol and Padur, approved in principle in 2018 and on a public-private model in 2021 — would take capacity to 11.83 MMT; Padur-II was awarded in August 2025 with a 2030 target, and Chandikhol awaits land. The counter shows strategic reserve capacity commissioned.
5.33 MMT
SPR capacity (Phase I)
~9.5 days
Of national crude demand
Phase II
Padur-II awarded (Aug 2025)
Strategic reserve capacity commissioned (MMT)
| Year | SPR capacity |
|---|---|
| 2016 | 1.33 MMT |
| 2017 | 2.83 MMT |
| 2018 | 2.83 MMT |
| 2019 | 5.33 MMT |
| 2020 | 5.33 MMT |
| 2021 | 5.33 MMT |
| 2022 | 5.33 MMT |
| 2023 | 5.33 MMT |
| 2024 | 5.33 MMT |
| 2025 | 5.33 MMT |
| 2026 | 5.33 MMT |
2016
0.00MMT
SPR capacity
20162026
Since 2016
Added
+4.00 MMT
2016
1.33 MMT
2026
5.33 MMT
Why it matters A strategic reserve is national insurance — a buffer against embargoes, wars or price spikes when about 88% of crude is imported.
- Phase I: 5.33 MMT at Visakhapatnam, Mangaluru & Padur (~9.5 days)
- Total storage capacity incl. oil companies: ~74 days (2021)
- Filled cheaply during the 2020 price crash, an estimated saving of ~₹5,000 crore
- Source: ISPRL / PIB
History
How it works
Crude is stored in underground rock caverns on the east and west coasts, linked to refineries — a cheap, secure way to hold oil that can be drawn down quickly in a crisis. India used the buffer smartly during the 2020 price crash, filling the caverns with cheap crude and saving an estimated ₹5,000 crore.
Phase II
In June 2018 the government approved Phase II in principle — 6.5 MMT more, at a new site in Chandikhol (Odisha) and an expansion at Padur — which would raise capacity to 11.83 MMT. In July 2021 the same 6.5 MMT was approved as commercial-cum-strategic storage under a public-private model. Padur-II was awarded in August 2025 with completion targeted for August 2030; at Chandikhol, ISPRL is still waiting for the state to allot land.
Outlook
India's current reserves hold about 5.33 million tonnes of crude across three southern caverns — enough for only about 9.5 days of national demand, well short of the 90-day cover big importers aim for. The next step is completing the delayed Phase II (large new caverns at Chandikhol and expanded Padur, adding about 6.5 million tonnes) and letting commercial players co-invest — turning the reserve from a thin cushion into a real strategic shock-absorber.
By the numbers
Phase I: 5.33 MMT (Visakhapatnam, Mangaluru, Padur) ~9.5 days; ~74 days of total storage capacity incl. oil companies (2021); Phase II → 11.83 MMT (delayed). Source: ISPRL / PIB.
Data current to: 31 March 2026
Source: Ministry of Petroleum & Natural Gas and ISPRL — Phase I strategic petroleum reserve capacity commissioned, million tonnes of crude (capacity, not the amount held), at 31 March each year: Visakhapatnam 1.33 MMT (commissioned June 2015), Mangaluru 1.5 MMT (October 2016) and Padur 2.5 MMT (December 2018), 5.33 MMT in all — about 9.5 days of national demand (linked). Phase II, 6.5 MMT at Chandikhol and Padur, was approved on a public-private model in July 2021; Padur-II was awarded in August 2025. · link