India aims for first strategic petroleum reserve with private company by 2029-30.

India plans to establish its inaugural privately managed Strategic Petroleum Reserve (SPR) by 2029-30, granting the operator autonomy to trade all stored oil, as stated by the Chief Executive of Indian Strategic Petroleum Reserves Ltd. (ISPRL). This move aligns with the model observed in nations like Japan and South Korea, where private lessees, predominantly oil majors, oversee crude trading. India, previously, has permitted only partial commercialization for its existing three SPRs in southern India, boasting a combined capacity of 36.7 million barrels.

The proposed expansion involves constructing two new SPRs, an 18.3-million-barrel cavern in Padur, southern Karnataka state, followed by a 29.3 million barrels SPR in eastern Odisha state. Private partners will be permitted to engage in local oil trading, although the government retains priority access in case of shortages. ISPRL has initiated a tender process to assess interest among local and global entities for the Padur SPR. The estimated project cost is approximately US$ 659 million (Rs. 55 billion), with the federal government potentially contributing up to 60% of the total expenditure.

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