The Report noted that government had allocated Rs 5,000 crore in the budget estimates 2023-24 for filling up crude oil reserves. However, no expenditure on this account was incurred in FY24. 

About India’s Strategic Petroleum Reserves (SPR)

• Genesis: In 2004, the Government initiated Strategic Petroleum Reserve (SPR) Programme for storage of strategic crude reserves.
• Institution: Managed by Indian Strategic Petroleum Reserves Limited (ISPRL)
• Indias’s Strategic Petroleum Reserve (SPR) Programme:
  • Phase-I: Completed with 5.33 MMT capacity across three locations - Visakhapatnam, Mangalore, and Padur (largest)
  • Phase-II: In 2021, Government approved two additional commercial-cum-strategic facilities at Chandikhol (4 MMT) in Odisha & Padur (2.5 MMT) in Karnataka.
• India’s total Storage Capacity:
  • Strategic storage through ISPRL caverns provide 9.5 days coverage.
  • Commercial storage by oil companies contribute to 64.5 days coverage.
  • Phase-II will add 11 more days, bringing India closer to International Energy Agency standard of 90 days.

Strategic Significance of SPR

• Strategic tool for international price stabilization
  • Example: India's coordinated release of 5 million barrels in 2021 with global consumers to cool oil prices.
• Enhances India's energy security and diplomatic leverage
  • Example: UAE's Abu Dhabi National Oil Company became first foreign entity storing crude in India's strategic reserves in 2017.