The cabinet on Wednesday approved establishment of two strategic petroleum reserves (SPRs) with a total capacity of 6.5 million tonnes, interim Finance Minister Piyush Goyal said.
The government will set up a 4.4-million-tonnes SPR at Chandikhol in Odisha, and a 2.5-million-tonnes facility at Padur in Karnataka.
The government has built three SPR of 5.33 million tonnes in south equivalent to meet 10 days of crude requirement.
The two planned SPRs will be provide additional supply of about 12 days.
India to approach potential investors for operating the SPRs on public private partnership.
ADNOC has leased a part of the existing storage at Padur.
Establishment of SPRs will significantly help India's energy security and insulate the country from external price and supply shocks.