India expands strategic oil reserves, boosts ethanol blending

The Union government is expanding the country’s strategic petroleum reserves (SPR) to strengthen energy security and reduce dependence on imported crude oil. As per the reports by ANI, Indian Strategic Petroleum Reserve Limited (ISPRL) has set up SPR facilities with a total capacity of 5.33 million metric tonnes (MMT) at Vishakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT),

Union minister of state for tourism and petroleum Suresh Gopi, in a written reply to the Lok Sabha, said that the government had approved the creation of two additional SPR facilities in July 2021. These reserves, with a combined storage capacity of 6.5 MMT, will be established at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka through a public-private partnership model, reported ANI. He added that the government and oil marketing companies continuously evaluate options to enhance storage capacities based on technical and commercial feasibility.

To reduce dependence on fossil fuels, the government is promoting natural gas and biofuels. Gopi highlighted the Ethanol Blended Petrol (EBP) Program, which enables oil marketing companies to sell petrol blended with ethanol, and the biodiesel blending initiative, reported ANI. The EBP Program targets 20% ethanol blending in petrol by 2025, with a growing shift toward grain-based ethanol from maize and surplus rice.

Government data shows that ethanol production has increased significantly, with grain-based ethanol accounting for 51% of total output in 2023-24. Concerns about food security persist, but officials argue that India produces a surplus of food grains. According to the department of agriculture & farmers welfare, India’s cereal production surpasses domestic consumption, with buffer stocks exceeding norms for five years.

The ethanol industry is projected to save Rs 40,000 crore annually in crude oil imports and reduce carbon emissions by 10 million tonnes. With expanding cultivated areas for both food and biofuel crops, experts say ethanol production aligns with economic and environmental goals.