India is planning Phase-II of its Strategic Petroleum Reserve programme under the Public-Private Partnership model with an estimated investment of ₹14,527 crore to strengthen long-term energy security and crude oil storage capacity.

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• The Government of India is planning Phase-II of the Strategic Petroleum Reserve programme under the Public-Private Partnership model with an estimated project cost of ₹14,527 crore.
• The proposed Phase-II project will establish two additional commercial-cum-strategic crude oil storage facilities, enhancing India’s emergency petroleum reserves and energy security.
• Union Minister of State for Petroleum Suresh Gopi informed the Lok Sabha that the government has capped Viability Gap Funding at 60 percent of the total project cost.
• Viability Gap Funding is financial assistance provided by the government to make economically important infrastructure projects commercially viable for private sector participation.
• Under Phase-I, India created a total strategic crude oil storage capacity of 5.33 million metric tonnes across Visakhapatnam, Mangaluru, and Padur.
• Strategic Petroleum Reserves help protect the country against global supply disruptions, geopolitical uncertainties, and sudden spikes in international crude oil prices.
• The Public-Private Partnership model is expected to encourage private investment while improving operational efficiency and reducing the government’s financial burden.
• Expansion of Strategic Petroleum Reserves will strengthen India’s energy resilience, improve crude oil availability during emergencies, and support long-term economic and energy security.