Argus News - Chandikhole Petroleum Reserve Project Gains Momentum in Odisha

Jajpur, Apr 11: Odisha is set to emerge as a major petroleum hub with the establishment of India’s largest underground crude oil storage project at Dankari foothills in Dharmasala tehsil of Jajpur district.

After years of delay due to land acquisition hurdles, the project has gained momentum following the formation of the BJP government in the state and renewed support from the Centre.

The Chandikhole Strategic Petroleum Reserve (SPR) was formally approved, aimed at ensuring petroleum supply during emergencies, by the Union Cabinet in June 2018.

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About the SPR:

• To be developed with an investment of ₹8,743 crore
• Expected to generate 5,130 direct jobs
• To indirectly benefit thousands more through ancillary industries and services
• Project spread across 400 acres
• To have a storage capacity of 3.7 million metric tonnes

Efforts Bear Fruit

Union Minister Dharmendra Pradhan has been instrumental in pushing the project since 2018, drawing Prime Minister Narendra Modi’s attention to its strategic importance. Despite initial reluctance from the then state government, Pradhan continued his efforts, writing to former Chief Minister Naveen Patnaik in December 2018.

In March 2026, Union Minister Pradhan wrote to Petroleum Minister Hardeep Singh Puri and Chief Minister Mohan Charan Majhi, leading to a Memorandum of Understanding (MoU) between EPICL and ISPRL to advance the project. His persistence has now borne fruit, with land acquisition finally underway.

Local leaders, including Jajpur MP Rabindra Narayan Behera and Dharmasala MLA Himanshu Sekhar Sahoo, hailed the project as a “defensive shield” for India’s energy security and a catalyst for regional economic growth.

Major Step in ‘Viksit Bharat’ Vision

The SPR at Chandikhole will join similar facilities already operational in Andhra Pradesh and Karnataka. Once functional, Odisha’s reserve will not only strengthen India’s energy resilience but also boost industrial development in Jajpur district, creating employment and infrastructure opportunities.