Letters Written to Centre and Odisha Government
Union Minister Dharmendra Pradhan has written separate letters to Union Petroleum Minister Hardeep Singh Puri and Odisha Chief Minister Mohan Charan Majhi, urging them to expedite the implementation of the Strategic Petroleum Reserve (SPR) project at Chandikhol in Jajpur district.
Focus on Strengthening India’s Energy Security
Highlighting the evolving global situation, especially geopolitical instability and conflicts in the Middle East, Pradhan stressed the urgent need to strengthen India’s energy security. He emphasized that the Chandikhol SPR project would play a crucial role in safeguarding the country’s future crude oil requirements.
Project Approved in 2018, Gains Momentum After MoU
The project was originally approved by the Union Cabinet under the leadership of Prime Minister Narendra Modi on June 27, 2018. However, it faced delays in implementation despite earlier communication with the then state government.
A major breakthrough came on April 8, 2025, when a Memorandum of Understanding (MoU) was signed in New Delhi between the Odisha government, Industrial Promotion & Investment Corporation of Odisha (IPICOL), and Indian Strategic Petroleum Reserve Limited (ISPRL), pushing the project forward.
Massive Investment and Economic Boost
The project, estimated at around ₹8,743 crore, is expected to be one of the largest underground crude oil storage facilities in the world, with a capacity of 4 million metric tonnes (MMT).
It is projected to generate over 5,000 direct and indirect employment opportunities while significantly contributing to Odisha’s GDP. The project is also expected to boost sectors like transportation, hospitality, and construction.
Enhancing India’s Oil Storage Capacity
Currently, India has a crude oil storage capacity sufficient for about 9.5 days. Once operational, the Chandikhol SPR will add an additional 7.12 days to the country’s reserve capacity.
This will act as a strategic buffer during global supply disruptions or price volatility in international markets.
Key Role in ‘Mission Purvodaya’ Vision
The project is expected to transform Odisha into a major industrial and economic hub in eastern India, aligning with the Centre’s “Mission Purvodaya” initiative aimed at accelerating growth in the region.
Critical Step for National Security and Economy
Pradhan emphasized that the Strategic Petroleum Reserve project will not only strengthen India’s energy security but also provide crucial support during emergencies. He urged both the Centre and the state government to take swift steps to ensure its timely completion and operationalisation.