The 1991 crisis, when India's reserves could barely cover three weeks of imports, exposed how exposed the country was. Prime Minister Vajpayee proposed strategic reserves in 1998, and ISPRL was set up in 2004 under Manmohan Singh's government. 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 roughly 9.5 days of cover alone, or about 74 days once refiners' commercial stocks are added. A larger Phase II (taking capacity to 11.83 MMT) is approved but still being built. The counter shows strategic reserve capacity commissioned.
5.33 MMT
SPR capacity (Phase I)
~9-10 days
Cover of imports
Phase II
Expansion underway
Strategic crude stored (MMT)
| Year | SPR capacity |
|---|---|
| 2014 | 1 MMT |
| 2015 | 1 MMT |
| 2016 | 3 MMT |
| 2017 | 3 MMT |
| 2018 | 5 MMT |
| 2019 | 5 MMT |
| 2020 | 5 MMT |
| 2021 | 5 MMT |
| 2022 | 5 MMT |
| 2023 | 5 MMT |
| 2024 | 5 MMT |
| 2025 | 5 MMT |
2014
0MMT
SPR capacity
20142025
Since 2014
Added
+4 MMT
2014
1 MMT
2025
5 MMT
Why it matters A strategic reserve is national insurance — a buffer against embargoes, wars or price spikes when nearly 85% of crude is imported.
- Phase I: 5.33 MMT at Visakhapatnam, Mangaluru & Padur (~9.5 days)
- With commercial stocks, India holds ~74 days of oil
- Filled cheaply during the 2020 price crash, saving ~₹5,000 crore
- Road ahead: completing the delayed Phase II (to 11.83 MMT) and building toward the IEA 90-day norm
- Source: ISPRL / PIB
History
How it works
Crude is stored in unlined underground rock caverns below the water table, close to coastal 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 Modi government approved Phase II — a new facility at Chandikhol (Odisha) and an expansion at Padur — which would raise capacity to 11.83 MMT, plus a further 6.5 MMT of commercial-cum-strategic storage cleared in 2021 under a public-private model. These are still under construction.
Outlook
India's current reserves hold about 5.33 million tonnes of crude across three southern caverns — enough for only around 9-10 days of imports, 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.
The road ahead
The next step is completing the delayed Phase II (beyond today's 5.33 MMT) and building toward the IEA's 90-day cover — a bigger cushion for a country importing most of its oil.
By the numbers
Phase I: 5.33 MMT (Visakhapatnam, Mangaluru, Padur) ~9.5 days; ~74 days including commercial stocks; Phase II → 11.83 MMT (delayed). Source: ISPRL / PIB.
Source: ISPRL / MoP&NG — strategic petroleum reserve capacity commissioned (MMT), Phase I.