MEIL Wins Landmark ₹5,700 Crore Bid for India’s Private Oil Reserve

Megha Engineering & Infrastructures Ltd. (MEIL) has secured the mandate to develop and operate India’s first privately developed Strategic Petroleum Reserve (SPR) at Padur, Karnataka—a landmark project in the country’s energy security framework.

The project involves an investment of ₹5,700 crore for construction, with an estimated ₹11,020 crore (USD 1.25 billion) required for crude oil filling at current prices. Once completed, the 2.5 million tonne (MMT) facility will significantly augment India’s existing 5.33 MMT SPR capacity, which currently provides 8–9 days of crude oil coverage.

MEIL will be granted a 60-year operational lease, with a five-year construction timeline. The project was awarded through a competitive bidding process conducted by Indian Strategic Petroleum Reserves Ltd. (ISPRL), which manages the country’s state-owned SPRs. The selection was based on the lowest Viability Gap Funding (VGF) request, with MEIL’s bid coming in just below the ₹3,420 crore cap (60% of project cost), outperforming two rival bidders.

As part of the agreement:

ISPRL will provide 214 acres of land free of cost., MEIL may be required to partially fill the reserve to support national emergency preparedness. This project marks the largest private-sector initiative in India’s energy storage infrastructure and reflects a growing role for public-private partnerships in critical national assets.

News by Rahul Yelligetti.