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India Prepares for Oil Supply Shocks with New Emergency Reserves

Written by: Neha DubeyUpdated on: 3 Jul 2025, 5:18 pm IST
India plans three new strategic oil reserves in Bikaner, Mangalore, and Bina to boost energy security and prepare for potential supply disruptions.
India Prepares for Oil Supply Shocks with New Emergency Reserves
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As part of its long-term energy security strategy, India is planning to expand its strategic petroleum reserves (SPRs) by setting up new facilities across three additional locations Bikaner in Rajasthan, Mangalore in Karnataka, and Bina in Madhya Pradesh. These will add to the country’s existing reserves in Mangalore, Padur, and Visakhapatnam (Vizag).

The move comes as global energy markets remain volatile and geopolitical disruptions continue to threaten supply chains. India, which imports over 80% of its crude oil needs, aims to build a stronger buffer against potential shocks.

New Oil Reserve Locations Being Evaluated

Feasibility studies are currently underway for the proposed sites. The projects, once cleared, will require final approval from the Union Cabinet.

The new reserves under consideration as per news reports include:

  • Bikaner, Rajasthan: 5.2–5.3 million tonnes (salt cavern-based)
  • Mangalore, Karnataka: 1.75 million tonnes (expansion)
  • Bina, Madhya Pradesh: Capacity yet to be determined

These would be in addition to two previously approved projects:

  • Padur (Karnataka): 2.5 million tonnes
  • Chandikhol (Odisha): 4 million tonnes

Strategic Vision and Storage Goals

India is steadily working toward enhancing its oil storage capabilities to prepare for any potential supply disruptions. As part of this vision, the country aims to build three new strategic reserves, complementing its existing infrastructure.

Speaking to Reuters, Indian Strategic Petroleum Reserve Ltd (ISPRL) CEO L R Jain said, "In case of exigencies, we will be better prepared." He further noted, "We are looking for 90 days of reserves. And Indian fuel demand is also rising, so we need additional storage."

Currently, India holds enough crude, including company reserves and in-transit stocks, to meet around 75 days of domestic consumption.

Why India’s Strategic Oil Reserves Expansion Matters?

Expanding oil storage capacity is not just about security it also aligns with India’s aspirations to join the International Energy Agency (IEA), which requires its members to hold at least 90 days of oil consumption in reserves. Given rising domestic fuel demand, India’s efforts to increase crude storage are a critical step in future-proofing its energy supply.

Read More: Massive Oil Discovery in Andaman Sea? Here's Why It Could Transform India’s Energy Future.

Conclusion

India’s plan to set up new strategic reserves marks a proactive move to ensure uninterrupted energy access in times of crisis. With feasibility studies underway and a long-term vision for 90 days of storage, the country is advancing toward a more resilient oil security framework one that reflects both global best practices and the unique needs of a growing economy.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Jul 3, 2025, 11:46 AM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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