By Vikas Sir, Founder & Senior Faculty – Cosmo Classes | 10 July 2026

Oil and Natural Gas Corporation Limited (ONGC) granted in-principle approval on 9 July 2026 for a 1.75 million metric tonnes (MMT) Strategic Petroleum Reserve (SPR) at Mangaluru in Karnataka. The project is a Phase-I extension of India's strategic crude storage network, which is developed and operated by Indian Strategic Petroleum Reserves Ltd. (ISPRL). Significantly, ONGC becomes the first public sector energy company in the country to directly fund the creation of a strategic crude storage facility.

A Strategic Petroleum Reserve is an emergency stockpile of crude oil that a country maintains to safeguard its energy security during disruptions in imports or sudden shocks in the global oil market. Because India imports more than 85 per cent of its crude oil requirement, such reserves act as a cushion against price volatility, geopolitical tensions and supply interruptions. India's existing strategic crude storage capacity stands at 5.33 million metric tonnes, spread across three locations, and this is sufficient for roughly 9.5 days of the country's crude oil requirement based on 2019-20 consumption patterns.

The three existing strategic crude storage sites in India are Visakhapatnam (Andhra Pradesh), Mangaluru (Karnataka) and Padur (Karnataka). These caverns store crude in underground rock formations, which is a safe and cost-effective method of storage. The new Mangaluru expansion will add to this network and strengthen the country's ability to manage emergency crude supply. ISPRL, a government-owned special purpose vehicle, is responsible for building and operating these facilities, and it functions under the guidance of the Ministry of Petroleum and Natural Gas.

The decision comes against the backdrop of supply vulnerabilities exposed during recent geopolitical disruptions, including the Iran conflict, which highlighted the risks to global crude markets. Alongside the approval, ONGC's board also directed its management to discuss the broader commercial utilisation of the reserves with the Government of India, reflecting a shift towards blending strategic and commercial objectives. The July 2026 filing did not disclose the project cost or completion timeline, although earlier estimates in June 2026 had pegged the project at about US$1.6 billion.

Exam Facts

▶ India's strategic petroleum reserve network currently has 5.33 MMT of storage capacity.

▶ The three existing SPR locations are Visakhapatnam, Mangaluru and Padur.

▶ ONGC = Oil and Natural Gas Corporation Limited.

▶ ISPRL = Indian Strategic Petroleum Reserves Ltd., which manages India's SPRs.

▶ SPRs function under the Ministry of Petroleum and Natural Gas.

▶ Existing capacity covers about 9.5 days of crude requirement (2019-20 basis).

▶ The new Mangaluru SPR will add 1.75 MMT of capacity.

Practice Set (10 Questions)

Q1. ONGC approved a new Strategic Petroleum Reserve at which location?
A. Visakhapatnam
B. Mangaluru
C. Padur
D. Chennai

Show Answer

Answer: B – Mangaluru, Karnataka.

Q2. What is the approved capacity of the new SPR?
A. 1.75 MMT
B. 5.33 MMT
C. 2.5 MMT
D. 0.75 MMT

Show Answer

Answer: A – 1.75 million metric tonnes.

Q3. Which body manages India's strategic petroleum reserves?
A. ONGC
B. ISPRL
C. GAIL
D. IOCL

Show Answer

Answer: B – Indian Strategic Petroleum Reserves Ltd. (ISPRL).

Q4. India's current SPR capacity is about:
A. 2.5 MMT
B. 5.33 MMT
C. 10 MMT
D. 1.75 MMT

Show Answer

Answer: B – 5.33 million metric tonnes.

Q5. The three existing SPR locations in India are:
A. Mumbai, Kochi, Chennai
B. Visakhapatnam, Mangaluru, Padur
C. Kandla, Paradip, Haldia
D. Jamnagar, Vadinar, Sikka

Show Answer

Answer: B – Visakhapatnam, Mangaluru and Padur.

Q6. A Strategic Petroleum Reserve is primarily meant for:
A. Commercial sale of crude
B. Emergency supply security
C. Refining crude oil
D. Exporting petroleum

Show Answer

Answer: B – Emergency supply security.

Q7. SPRs in India function under which ministry?
A. Ministry of Finance
B. Ministry of Petroleum and Natural Gas
C. Ministry of Commerce
D. Ministry of Power

Show Answer

Answer: B – Ministry of Petroleum and Natural Gas.

Q8. India's existing SPR capacity covers roughly how many days of crude requirement?
A. 30 days
B. 9.5 days
C. 60 days
D. 90 days

Show Answer

Answer: B – About 9.5 days (2019-20 basis).

Q9. ONGC is notable in this project because it is the first PSU to:
A. Import crude oil
B. Directly fund a strategic crude storage facility
C. Build a refinery abroad
D. Export petroleum products

Show Answer

Answer: B – Directly fund a strategic crude storage facility.

Q10. Earlier estimates placed the Mangaluru SPR project cost at about:
A. US$0.5 billion
B. US$1.6 billion
C. US$5 billion
D. US$10 billion

Show Answer

Answer: B – US$1.6 billion.

UPSC / RPSC Relevance

  • UPSC Prelims: Economy & Current Affairs (energy security, PSUs, SPR).
  • UPSC Mains – GS Paper III: Infrastructure & Energy — energy security, strategic reserves and India's crude import dependence.
  • RPSC (RAS) Prelims & Mains: Indian Economy & current affairs — energy security and public sector undertakings.

UPSC Mains Descriptive Question

Q. "Strategic petroleum reserves are central to India's energy security." Examine the significance of SPRs in the context of India's high crude import dependence and recent geopolitical disruptions. (250 words, 15 marks)

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