Key facts
- The Chandikhol site in Odisha would hold up to 4 million tons of crude oil, per tender documents reported by The Economic Times.
- India's government is offering a $546 million grant toward the estimated $910 million cost of the site.
- Bids on the tender are due by February 26, 2027, according to its terms.
- India's existing strategic reserve holds 5.33 million metric tons of crude, equal to 39 million barrels or eight days of consumption.
- ONGC will build a storage site at Mangaluru to hold about 13 million barrels of oil, the report said.
India is seeking private investors to build and operate a strategic petroleum reserve site at Chandikhol in the eastern state of Odisha, on the Bay of Bengal, according to tender documents reported by The Economic Times on November 13, 2026. The site would hold up to 4 million tons of crude oil and would raise India's strategic reserve capacity by 80% at an estimated cost of $910 million.
The government is offering a grant of $546 million, or 51.4 billion Indian rupees, to support private investment in the facility. Bids must be submitted by February 26, 2027.
India's existing underground strategic petroleum reserve holds 5.33 million metric tons of crude oil, equal to 39 million barrels, or eight days of the country's oil consumption. The body describes India as the world's third-largest crude oil importer and one of the most exposed to supply shocks.
The expansion was a strategic priority before the Strait of Hormuz was closed, the report said, and the supply disruption early in 2026 accelerated plans for new reserve sites. State-owned Oil and Natural Gas Corporation, described as India's top explorer, will build a storage site at Mangaluru to hold about 13 million barrels of oil. Record crude imports from Russia helped offset lost Middle Eastern supply, the report said, but India concluded it needs additional storage for commercial and strategic reserves.