What Happened
- Prime Minister Narendra Modi addressed both houses of Parliament on March 24, 2026, providing the government's assessment of the West Asia conflict's impact on India and measures being taken to safeguard energy and food security.
- In the Rajya Sabha, PM Modi stated that India has "adequate crude oil storage" and "arrangements for continuous supply," assuring citizens against panic.
- The PM disclosed that India's Strategic Petroleum Reserve has grown to over 53 lakh metric tonnes in the last 11 years, with work underway to expand it beyond 65 lakh metric tonnes.
- India's oil import source base has diversified from 27 countries to 41 countries, reducing concentration risk. The government is actively procuring gas, crude, and LPG from all available sources.
- Refining capacity has been significantly expanded over the past decade, and India's fundamentals remain strong despite what the PM called "serious side effects" of the conflict.
- PM Modi simultaneously announced the formation of seven empowered groups of officials to manage the energy, food, and supply chain disruptions caused by the Hormuz blockage.
- Separately, in the Lok Sabha, the PM emphasised energy diversification, the safety of Indian nationals in West Asia, and India's neutral diplomatic posture in the conflict.
Static Topic Bridges
India's Strategic Petroleum Reserve: Architecture and Coverage
India's Strategic Petroleum Reserve (SPR) is a state-owned emergency crude oil stockpile designed to buffer against supply disruptions. The SPR is managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle (SPV) under the Ministry of Petroleum and Natural Gas. Unlike commercial storage held by Oil Marketing Companies (OMCs), the SPR is maintained exclusively for strategic purposes and can only be released on government direction during emergencies.
The existing Phase I SPR consists of underground rock caverns at three coastal locations — Vishakhapatnam (Andhra Pradesh), Mangaluru (Karnataka), and Padur (Karnataka) — with a combined capacity of 5.33 MMT. These were commissioned in 2019. At 2019-20 consumption rates, the SPR alone covers approximately 9.5 days of crude requirement. When added to OMC commercial stocks, the total national crude storage cover is approximately 74 days — well above the International Energy Agency's (IEA) recommended 90-day benchmark, though India is not an IEA member.
Phase II expansion, approved in July 2021, envisages 6.5 MMT of additional capacity at Chandikhol (4 MMT, Odisha) and additional Padur capacity (2.5 MMT), to be developed on a Public-Private Partnership basis with an anchor commercial tenant model (oil companies can use a share of capacity commercially; the remaining portion is strategic reserve).
- ISPRL: SPV under Ministry of Petroleum and Natural Gas; set up under the Indian Strategic Petroleum Reserves programme.
- Phase I capacity: 5.33 MMT — Vishakhapatnam (1.33 MMT), Mangaluru (1.50 MMT), Padur (2.50 MMT).
- Strategic coverage: ~9.5 days at 2019-20 consumption.
- Total national coverage (SPR + OMC): ~74 days.
- Phase II: 6.5 MMT at Chandikhol and Padur (PPP model, approved 2021).
- PM Modi target: expand SPR to over 65 lakh MT.
- IEA 90-day benchmark: India exceeds this when including OMC stocks but has no IEA obligation (India is not an IEA member, though it holds observer status).
Connection to this news: PM Modi's assurance to Parliament about adequate crude storage is grounded in this SPR and OMC stock architecture. The planned expansion to 65 lakh MT reflects lessons from this crisis — building larger buffers reduces vulnerability to supply shocks.
India's Oil Import Diversification Strategy
India's journey from sourcing crude from 27 to 41 countries reflects a deliberate diversification strategy that gained urgency after the 2022 Russia-Ukraine conflict tested supply chains globally. Key milestones: after Western sanctions on Russian crude, India stepped in to purchase discounted Russian Urals crude, with Russia eventually becoming India's top supplier. This diversification reduced dependence on traditional Middle East suppliers (Saudi Arabia, Iraq) and proved India's ability to rapidly redirect procurement. Other sources include the US (WTI crude), West Africa (Nigeria, Angola), Brazil, and Australia.
- India is the world's third-largest oil importer (~5 million barrels/day).
- Pre-diversification: 27 source countries; post-diversification push: 41 countries.
- Russia became largest crude supplier to India from 2022 onward, accounting for over 40% of imports at peak.
- During the 2026 crisis: 70% of India's crude imports sourced outside Hormuz.
- LPG diversification lagged — Middle East retained ~97% share, making the Hormuz disruption an LPG crisis more than a crude crisis.
- India does not have strategic LPG reserves equivalent to its crude SPR.
Connection to this news: PM Modi's Parliament statement implicitly distinguishes between crude (relatively well-managed through diversification) and LPG (more severely disrupted due to insufficient diversification). The crisis makes a strong case for extending India's diversification strategy to LNG and LPG import chains.
Parliamentary Accountability and Executive Statements During National Crises
Under the Constitution, Parliament is the supreme forum for executive accountability. During national crises, the government is expected to brief Parliament, and the PM's personal address to both houses signifies the gravity with which the government regards the situation. The Finance Minister, Home Minister, and Petroleum Minister all made separate statements in their respective domains, representing coordinated parliamentary communication during a crisis.
- Article 75(3): Council of Ministers is collectively responsible to the Lok Sabha.
- Question Hour, Zero Hour, Short Notice Questions, and Calling Attention Motions are instruments for parliamentary scrutiny of executive actions during crises.
- Parliamentary standing committees (e.g., Committee on Petroleum and Natural Gas) can separately examine sectoral responses.
- PM addressing Rajya Sabha (Upper House) separately from Lok Sabha signals the strategic importance the government assigns to the crisis.
- Rajya Sabha has co-equal powers on non-Money Bills; energy security-related legislative responses would require both houses.
Connection to this news: The PM's dual-house address represents the constitutional mechanism of parliamentary accountability in action during an external shock with domestic economic consequences — a frequently examined theme in GS Paper 2.
Key Facts & Data
- India's SPR capacity: 5.33 MMT at 3 underground caverns (Vishakhapatnam, Mangaluru, Padur).
- SPR managed by: ISPRL (Indian Strategic Petroleum Reserves Limited), a GoI SPV.
- Strategic crude cover: ~9.5 days; total (SPR + OMC): ~74 days.
- Phase II expansion: 6.5 MMT at Chandikhol and Padur (PPP model, approved 2021).
- India's energy supplier base: 27 countries (a decade ago) → 41 countries now.
- Crude from outside Hormuz during crisis: 70% of India's imports.
- India: world's third-largest oil importer (~5 million barrels/day).
- India's crude basket peaked above $156/barrel during the current crisis.
- Seven empowered groups of officials formed for crisis management.
- IEA 90-day SPR benchmark: India is not an IEA member but exceeds this with commercial stocks added.