MEIL Wins Mandate for India’s First Private SPR
OIL & GAS

MEIL Wins Mandate for India’s First Private SPR

Megha Engineering & Infrastructures Ltd (MEIL) has secured a contract from Indian Strategic Petroleum Reserves Ltd (ISPRL) to build and operate India’s first private-sector strategic petroleum reserve (SPR) at Padur, Karnataka. The 2.5 million metric tonne (MMT) project is valued at Rs 57 billion, with an estimated Rs 110.2 billion crude filling cost at current prices.
ISPRL had invited bids for the second phase of SPR development at Padur, marketing the tender globally to Middle Eastern producers such as Saudi Aramco and traders including Goldman Sachs and Vitol, though no foreign firms participated. To attract investors, the government eased sale and export controls on SPR oil and extended tax incentives, including viability gap funding (VGF) capped at 60 per cent of project cost or Rs 34.2 billion. MEIL’s bid, placed just below this ceiling, secured the project over two domestic rivals.
The facility will be built on a 214-acre land parcel provided free by ISPRL and will include storage caverns, dedicated loading and unloading facilities, and onshore and offshore pipelines. MEIL can monetise the investment by leasing storage space to the government or oil companies for steady cash flow, and trading stored crude for higher returns. In emergencies, the government will have first rights over stored oil, ensuring the reserve serves both commercial and strategic purposes.
India’s existing SPR capacity stands at around 39 million barrels across Visakhapatnam, Mangaluru, and Padur. In comparison, the United States holds 727 million barrels and China over 1,200 million barrels. ISPRL aims to more than triple India’s SPR capacity over the next decade to 15 million tonnes, meeting International Energy Agency requirements of 90 days of crude storage.
To safeguard crude supplies and reduce dependency on any single region, Indian oil PSUs source from multiple geographies, including the Middle East, Africa, North and South America. India has also secured long-term LNG agreements to ensure uninterrupted supply and hedge against price volatility. 

Megha Engineering & Infrastructures Ltd (MEIL) has secured a contract from Indian Strategic Petroleum Reserves Ltd (ISPRL) to build and operate India’s first private-sector strategic petroleum reserve (SPR) at Padur, Karnataka. The 2.5 million metric tonne (MMT) project is valued at Rs 57 billion, with an estimated Rs 110.2 billion crude filling cost at current prices.ISPRL had invited bids for the second phase of SPR development at Padur, marketing the tender globally to Middle Eastern producers such as Saudi Aramco and traders including Goldman Sachs and Vitol, though no foreign firms participated. To attract investors, the government eased sale and export controls on SPR oil and extended tax incentives, including viability gap funding (VGF) capped at 60 per cent of project cost or Rs 34.2 billion. MEIL’s bid, placed just below this ceiling, secured the project over two domestic rivals.The facility will be built on a 214-acre land parcel provided free by ISPRL and will include storage caverns, dedicated loading and unloading facilities, and onshore and offshore pipelines. MEIL can monetise the investment by leasing storage space to the government or oil companies for steady cash flow, and trading stored crude for higher returns. In emergencies, the government will have first rights over stored oil, ensuring the reserve serves both commercial and strategic purposes.India’s existing SPR capacity stands at around 39 million barrels across Visakhapatnam, Mangaluru, and Padur. In comparison, the United States holds 727 million barrels and China over 1,200 million barrels. ISPRL aims to more than triple India’s SPR capacity over the next decade to 15 million tonnes, meeting International Energy Agency requirements of 90 days of crude storage.To safeguard crude supplies and reduce dependency on any single region, Indian oil PSUs source from multiple geographies, including the Middle East, Africa, North and South America. India has also secured long-term LNG agreements to ensure uninterrupted supply and hedge against price volatility. 

Next Story
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?