Government directs Oil and Natural Gas Corp (ONGC) to build ₹15,000 crore Strategic Petroleum Reserve (SPR)

Key facts

• Oil and Natural Gas Corp (ONGC) will develop a 1.75 million metric tonne (MMT) underground cavern at Mangaluru, Karnataka, to strengthen India's energy security.
• The project involves a total investment of approximately ₹15,000 crore ($1.6 billion), including ₹5,000 crore for construction and ₹10,000 crore for crude oil stocks.
• This is the first instance of a state-run oil company developing an SPR facility, as existing sites are managed by Indian Strategic Petroleum Reserves Ltd (ISPRL).
• India's current emergency crude storage capacity stands at 5.33 MMT, located at Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT).
• The second phase of SPR expansion includes a 4 MMT facility at Chandikhol, Odisha, and a 2.5 MMT facility at Padur, Karnataka, under a public-private partnership (PPP) model.