India plans two new strategic oil reserve facilities in Bina and Bikaner

India is considering two new strategic petroleum reserve facilities in Madhya Pradesh's Bina and Rajasthan's Bikaner as it looks to strengthen the country's energy security, according to a parliamentary committee report submitted on Wednesday.

The Standing Committee on Petroleum & Natural Gas said feasibility work for the Bikaner facility has been completed and is being finalised. A pre-feasibility study for the Bina facility has also been completed, with a detailed feasibility report (DFR) to be initiated.

The petroleum ministry told the committee that it continuously evaluates new sites and expansion
opportunities for increasing crude oil and petroleum product storage capacity, based on technical, commercial, and strategic considerations.

"Two more new SPR projects are under consideration, at Bikaner and Bina. Feasibility studies for the
Bikaner caverns have been completed, and under finalisation, while the pre-feasibility study for the Bina caverns has also concluded and the DFR to be initiated," the committee report quoted the ministry as saying.

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MORE OIL STORAGE IN THE PIPELINE

The government is already expanding its strategic oil storage capacity under Phase-II.

It approved two additional reserves in July 2021, with a combined capacity of 6.5 million metric tonnes (MMT). This includes 4 MMT at Chandikhol in Odisha and 2.5 MMT at Padur in Karnataka.

The government told the committee that 400 acres of land had been acquired at Chandikhol. The request for proposal (RFP) is under review and will be floated after finalisation.

For Padur-II, the concessionaire agreement between Indian Strategic Petroleum Reserves Ltd (ISPRL) and the selected bidder was signed on October 1, 2025. Financial closure is in progress.

ISPRL has also completed a feasibility study for another 1.75 MMT of storage at Mangalore, next to the existing Phase-I facility. Around 155 acres of land have already been acquired, while the process for notifying another 66 acres as part of the special economic zone is under way.

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PUSH FOR 90 DAYS OF OIL

The committee urged the government to complete the pending RFPs, SEZ notification and financial closures within the scheduled timelines and ensure optimal use of funds. It also called for the government to work towards the global standard of maintaining 90 days of crude oil storage in the country.

Fuel security concerns have gained attention after disruptions to supplies through the Strait of Hormuz.

India currently has 5.3 MMT of strategic oil reserves. These were developed under Phase-I at Mangalore and Padur in Karnataka and Visakhapatnam in Andhra Pradesh to protect against global supply disruptions.