NEW DELHI: India is seeking private investors to build and operate its largest strategic petroleum reserve (SPR) at Chandikhol in Odisha, a 4-million-tonne underground crude oil storage project estimated to cost Rs 8,571 crore, according to tender documents reported by the Economic Times and carried by energy trade publications on November 13.

Source: Economic Times tender reporting via OilPrice, Nov 13, 2026

The tender, issued by Indian Strategic Petroleum Reserves Limited (ISPRL), covers the development and operation of a 4.0 million metric tonne commercial-cum-strategic petroleum reserve, including a dedicated single point mooring (SPM) and associated onshore and offshore pipelines, on a design, build, finance, operate and transfer (DBFOT) basis under a public-private partnership.

Source: ISPRL tender listing, BidDetail (TenderID 120100590)

4 million tonnesChandikhol storage capacity
Rs 8,571 croreEstimated project cost
Rs 5,142 croreMaximum government grant support
26 Feb 2027Bid submission deadline

To support private participation, the government is offering a grant of up to Rs 5,142 crore — about 546 million dollars — as viability gap support, according to the tender documents. Bids for the Chandikhol project are due by February 26, 2027.

Why the reserve matters

India's existing underground strategic reserves at Visakhapatnam, Mangaluru and Padur together hold 5.33 million metric tonnes of crude oil, or about 39 million barrels. Chandikhol alone, at 4 million tonnes, would raise the country's strategic storage capacity by roughly 80 per cent, strengthening the buffer India holds against supply disruptions and price shocks in global oil markets.

ISPRL has also issued a separate tender to lease about 5,24,000 tonnes of existing storage capacity at Visakhapatnam for an initial period, with bids for that lease due by December 1, 2026, according to tender listings.

The move marks a shift in how India finances strategic storage: facilities built so far were funded and run by the state through ISPRL, while Chandikhol is structured to bring in private capital, backed by government grant support, to build and operate the country's biggest reserve site on the Bay of Bengal coast.