New Delhi, July 2, 2025 : The Indian government is working on building three new strategic oil storage facilities to make the country more secure in times of fuel shortage or international crises. These special reserves will be set up in Bikaner (Rajasthan), Mangalore (Karnataka), and Bina (Madhya Pradesh).

According to government officials, the Bikaner storage will be the biggest, with a capacity of about 5.2 to 5.3 million tonnes (MT) of crude oil. Mangalore will get an additional 1.75 MT, while Bina’s capacity is still being studied.

Right now, India has storage for around 75 days of oil, but the International Energy Agency (IEA) recommends that countries should have at least 90 days of oil reserves. With the new storage sites, India hopes to meet this international target and reduce its dependence on imported oil during emergencies.

The project is still at the feasibility study stage, where engineers and planners are checking if the locations are safe, cost-effective, and suitable for large-scale oil storage. Once these studies are done, the Union Cabinet will review the plan and give final approval.

The government is also looking at involving private companies in the building and maintenance of these oil reserves. This public-private partnership could help in sharing the cost and improving efficiency.

India currently has three major strategic reserves in Visakhapatnam, Mangalore, and Padur, with a total capacity of about 5.33 MT. These were built after the 1990s Gulf War, when oil prices rose sharply and highlighted the need for better energy preparedness.

By building new reserves, India wants to be ready for any future crisis like a war, natural disaster, or price shock, that might cut off oil supplies. Officials say that these projects will also create jobs and boost local economies in the chosen regions.

Energy experts believe this is a smart step. "India is one of the world's largest oil importers. Having a bigger oil reserve will help protect the economy if global oil prices rise suddenly," said energy analyst Ravi Mehra.

Once the Cabinet approves the plan, construction is expected to begin in late 2025 or early 2026. The reserves could be ready within three to four years after work starts.

This is part of India’s long-term plan to improve energy independence and ensure affordable fuel supply for all its citizens, especially during emergencies.