Relevance: GS II (International Relations) & GS III (Energy Security) | Source: The Hindu / The Indian Express

1. What is the Big Crisis?

The ongoing conflict between the U.S., Israel, and Iran has put India’s energy security at severe risk.

  • The Danger Zone: Iran has threatened to block ships in the Strait of Hormuz, a narrow water route through which nearly 50% of India’s crude oil and 80% of our cooking gas (LPG) travel.
  • The 30-Day Relief: To prevent the global economy from crashing due to an “oil shock”, the U.S. has given India a special 30-day “window.” This allows India to temporarily buy more oil from Russia without facing strict international sanctions.

2. What is India’s Backup Plan? (The “Oil Bank”)

Because we cannot always trust foreign sea routes during a war, India has built a massive backup system called Strategic Petroleum Reserves (SPR).

  • What are they? Think of SPR as a giant emergency piggy bank for the nation. Instead of money, India stores millions of barrels of crude oil deep inside massive underground rock caves.
  • Emergency Insurance: It keeps the country running for several days if our regular oil ships are blocked by a war.
  • Controlling Prices: If global oil prices shoot up, the government can use this stored oil to ensure petrol and diesel prices do not become too expensive for the common man.
  • True Independence: Having our own emergency oil gives India “Strategic Autonomy”—meaning we do not have to panic or blindly obey foreign countries just to get fuel.

3. Where is this Oil Hidden?

These massive underground tanks are managed by a special government company called ISPRL (Indian Strategic Petroleum Reserves Limited). They are built in two phases:

Phase Location of the Underground Reserve State
Phase 1 Visakhapatnam Andhra Pradesh
Mangaluru Karnataka
Padur Karnataka
Phase 2 Chandikhole Odisha
Padur (Expansion) Karnataka

UPSC Value Box

Important Concept Simple Meaning
Strategic Autonomy India’s ability to make independent foreign policy decisions (like buying oil from Russia) without being forced by big powers like the US.
ISPRL Indian Strategic Petroleum Reserves Limited. The government company responsible for building and managing India’s emergency underground oil tanks.

With reference to India’s energy security and Strategic Petroleum Reserves (SPR), consider the following statements:

  1. The Indian Strategic Petroleum Reserves Limited (ISPRL) is responsible for managing the country’s emergency crude oil storage.
  2. Under Phase 1 of the SPR programme, underground rock caverns were constructed exclusively in the states of Gujarat and Maharashtra.
  3. The Strait of Hormuz is a vital maritime chokepoint connecting the Red Sea to the Mediterranean Sea.

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Correct Answer: (a)

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