India Advances Plans to Expand Strategic Oil Reserve at Chandikhol, Bikaner, Bina

India is advancing plans to expand its strategic petroleum reserves (SPR), with 400 acres of land acquired at Chandikhol in Odisha for a new storage facility, while projects in Bina, Madhya Pradesh, and Bikaner, Rajasthan, are under consideration, according to a parliamentary committee report.

In its action-taken response to the Standing Committee on Petroleum and Natural Gas, the Petroleum Ministry said 400 acres had been acquired at Chandikhol to increase strategic petroleum storage capacity. The request for proposal (RFP) for the project is under review and will be floated after finalization.

Two new SPR projects are also under consideration at Bikaner and Bina. Feasibility studies have been completed for the Bikaner caverns, while the pre-feasibility study for the Bina caverns has been completed and a Detailed Feasibility Report is to be initiated, the ministry said.

As regards the caverns at Padur-II, the government said the Concessionaire Agreement between Indian Strategic Petroleum Reserves Limited (ISPRL) and the selected bidder was signed on October 1, 2025. Final closure to meet the conditions precedent is in progress.

In addition to the Phase-II SPR projects with a combined capacity of 6.5 million tonnes, ISPRL has completed a feasibility study for developing an additional 1.75 million tonnes of storage capacity at Mangalore. It has already acquired around 155 acres of land and is in the process of obtaining Special Economic Zone (SEZ) notification for 66 acres.

The committee urged the Petroleum Ministry to ensure the finalization of RFPs, SEZ notification and financial closures within the scheduled timelines, while ensuring optimal utilization of funds.