Megha Engineering & Infrastructures Ltd. (MEIL) has secured a groundbreaking mandate to build and operate India's first-ever private-sector Strategic Petroleum Reserve (SPR). 

The Rs 5,700 crore project, located at Padur in Karnataka, is a significant milestone in strengthening the nation's energy security. This initiative also marks the largest private-sector endeavor to date in this critical domain.

The project, which will be managed by the state-owned Indian Strategic Petroleum Reserves Ltd (ISPRL), involves the construction and operation of a 2.5 million metric tonnes (MMT) crude oil storage facility. 

MEIL has been given a five-year period for construction and a 60-year operational term. This new reserve will substantially boost India's current strategic stockpile of 5.33 MMT, which can only cover 8-9 days of crude demand.

MEIL's bid, which was based on the viability gap funding (VGF) required, was marginally below the capped amount of Rs 3,420 crore (60% of the project cost).