India plans Phase-2 of strategic petroleum reserves under PPP model at estimated ₹14,527 crore
India is planning to develop two new strategic petroleum reserve facilities under a public-private partnership model at a cost of ₹14,527 crore. The government will provide up to 60% of the project cost as viability gap funding to enhance national energy security.
Why it matters
Expanding strategic oil reserves is a key component of India's energy security strategy to mitigate supply chain disruptions.
India is planning to build two additional commercial-cum-strategic petroleum reserve facilities (SPR) under a public-private partnership (PPP) model at an estimated project cost of ₹14,527 crore as part of strengthening its energy security.
The viability gap funding (VGF), -- a government assistance provided to make essential, economically beneficial infrastructure projects commercially feasible -- has been capped at 60% of the total project cost, Suresh Gopi, Minister of State for Union Petroleum Ministry stated in response to a query at the Lok Sabha.
“For development of SPR facilities under Phase-II, a PPP model is envisaged with a total project cost of ₹14,527 crores with the VGF by Government capped at 60% of the total project cost,” he said.
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