Udupi to host India’s first private strategic oil reserve; ₹5,700-crore project in Padur

News Network
September 17, 2025

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Udupi: The coastal district is set to make history as Padur in Udupi will soon house India’s first private strategic petroleum reserve (SPR). Hyderabad-based Megha Engineering & Infrastructures Ltd (MEIL) has won the government bid to design, build, and operate the massive underground oil storage facility with a capacity of 2.5 million metric tonnes (MMT).

The project, estimated at ₹5,700 crore, will be developed on a 214-acre site in Padur, where a government-run SPR of equal size already exists. Once operational, the reserve will be capable of storing enough crude oil to help strengthen India’s energy security and reduce its dependence on volatile global markets.

How the Project Was Awarded

The Indian Strategic Petroleum Reserves Ltd (ISPRL), a government-owned body, floated the tender in December 2024. Megha Engineering reportedly outbid two competitors by seeking viability gap funding (VGF) slightly below the ceiling of ₹3,420 crore (60% of the project cost).

The winning bidder will not only construct the underground cavern but also finance, develop, operate, and manage the facility under a long-term concession agreement. ISPRL is expected to sign the deal soon and formally hand over the land for construction.

A Boost to India’s Oil Security

At present, India’s total strategic oil storage stands at 5.33 MMT, spread across Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT), and Padur (2.5 MMT). These facilities together provide just 8–9 days of crude import cover—far less than the reserves held by the United States (727 million barrels) and China (1,200 million barrels).

The new Padur project will add significantly to India’s capacity, bringing the total closer to meeting long-term targets. Once complete, the facility will be operated by Megha Engineering for 60 years.

Dual Role: Business and National Safeguard

Under the terms of the agreement, Megha Engineering will be able to lease storage capacity to oil companies or the government and also trade crude oil stored in the reserve. While leasing offers steady revenue, trading carries greater financial risk.

However, the government will retain first rights over the stored oil during emergencies, ensuring the facility doubles as both a commercial asset and a national safeguard.

The project also includes construction of pipeline and port-linked infrastructure to enable crude loading and unloading. Filling the reserve with crude oil is expected to cost around ₹11,020 crore ($1.25 billion) at current global prices.

A Long-Term Vision

The Union Cabinet had approved private participation in SPRs back in 2018, paving the way for the Padur project in Udupi and another planned reserve at Chandikhol in Odisha.

With a five-year timeline, the Udupi facility is poised to play a key role in India’s energy resilience strategy, placing the coastal Karnataka district at the center of a critical national security project.

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News Network
November 30,2025

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Mangaluru, Nov 30: A 22-year-old college student succumbed to her injuries at a private hospital in Mangaluru today, days after she was hit by a goods tempo while crossing a road in Padubidri.

The deceased has been identified as Preksha, a resident of Nadsalu Billitota in Padubidri. The fatal incident occurred as Preksha, who was returning home after completing her examination, attempted to cross the service road towards Mangaluru. She was struck by a goods tempo approaching from the Udupi side, causing her to fall and sustain a severe head injury.

Prompt action from local residents ensured she received immediate first aid before being rushed to a hospital in Mangaluru for specialised treatment. Despite medical efforts, she passed away while undergoing care.

Preksha was a student at Karavali College, Vamanjoor on the outskirts of Mangaluru city. The tragedy is compounded by the fact that she belonged to a financially vulnerable family, having previously lost her father. She is survived by her mother and brother.

A case related to the accident has been registered at the Padubidri police station, and an investigation is underway to determine the exact circumstances that led to the collision. The incident highlights the growing concerns over road safety, particularly on busy service roads, and serves as a tragic reminder of the human cost of traffic accidents.

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News Network
November 26,2025

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Bengaluru, Nov 26: Karnataka is taking its first concrete steps towards lifting a three-decade-old ban on student elections in colleges and universities. Deputy Chief Minister D.K. Shivakumar announced Wednesday that the state government will form a small committee to study the reintroduction of campus polls, a practice halted in 1989 following incidents of violence.

Speaking at a 'Constitution Day' event organised by the Karnataka Congress, Mr. Shivakumar underscored the move's aim: nurturing new political leadership from the grassroots.

"Recently, (Leader of the Opposition in Lok Sabha) Rahul Gandhi wrote a letter to me and Chief Minister (Siddaramaiah) asking us to think about restarting student elections," Shivakumar stated. "I'm announcing today that we'll form a small committee and seek a report on this."

Student elections were banned in Karnataka in 1989, largely due to concerns over violence and the infiltration of political party affiliates into campus life. The ban effectively extinguished vibrant student bodies and the pipeline of young leaders they often produced.

Mr. Shivakumar, who also serves as the Karnataka Congress president, said that former student leaders will be consulted to "study the pros and cons" of the re-introduction.

Acknowledging the history of the ban, he added, "There were many criminal activities taking place back then. We’ll see how we can conduct (student) elections by regulating such criminal activities."

The Deputy CM reminisced about his own journey, which began on campus. He recalled his political activism at Sri Jagadguru Renukacharya College leading to his first Assembly ticket in 1985 at the age of 23. "That's how student leadership was at the time. Such leadership has gone today. College elections have stopped," he lamented, adding that for many, college elections were "like a big movement" where leaders were forged.

The move, driven by the Congress high command's push to cultivate young talent, will face scrutiny from academics and university authorities who have, in the past, expressed concern that the return of polls could disrupt the peaceful academic environment and turn campuses into political battlegrounds.

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News Network
November 21,2025

Bantwal: A domestic dispute appears to have led to a violent confrontation in BC Road area, where the owner of a textile shop was allegedly attacked with a knife by his wife on Wednesday evening.

Krishna Kumar Somayaji, the owner of Somayaji Textiles, sustained serious injuries in the incident and was immediately taken to a hospital for treatment. He is currently receiving care in the intensive care unit and is reported to have survived the assault, according to police.

The Bantwal Town police have registered a case against Somayaji's wife, Jyothi KT, who has since been taken into custody.

Police stated that the complainant, Namita, an employee at the shop, reported the sequence of events. She stated that around 7 p.m. on Wednesday, the suspect entered the shop, wearing a burqa and disguised as a customer, before attacking Somayaji with a knife. The employee then transported the injured owner to a local hospital via an autorickshaw.

Superintendent of Police Arun K confirmed that an ongoing domestic dispute between Somayaji and his wife reportedly preceded the attack. Police noted that Jyothi KT had previously visited the shop and issued threats.

Based on the complaint, Bantwal Town police have registered a case under relevant sections of the Bharatiya Nyaya Sanhita (BNS) and the Indian Arms Act-1959. An investigation into the incident is currently underway.

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