Indian Govt Directs ONGC To Build ₹15,000 Crore Underground
Indian Govt Directs ONGC To Build ₹15,000 Crore Underground
New Delhi: In a major move to strengthen India's long-term energy security, the Central Government has directed Oil and Natural Gas Corporation (ONGC) to develop a ₹15,000 crore underground Strategic Petroleum Reserve (SPR) at Mangaluru, Karnataka. The proposed facility will significantly expand India's emergency crude oil storage capacity and help safeguard the country against global supply disruptions and sharp fluctuations in crude oil prices.
The underground crude storage cavern will be built on land already owned by ONGC. Around ₹5,000 crore is expected to be spent on constructing the facility, while nearly ₹10,000 crore will be required to procure and fill the reserve with crude oil. This marks the first time ONGC has been tasked with financing and developing a national strategic petroleum reserve, representing a significant shift from the government's earlier funding model.
The project comes amid rising geopolitical tensions and concerns over disruptions to global oil supply routes, reinforcing India's efforts to build a more resilient and secure energy infrastructure for the future.