Odisha Government Finally Transfers Land for Strategic Oil Reserve Project After 7-Year Delay
After 7-yr delay, Odisha hands over land for Chandikhol oil reserve project
Business Standard
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After a delay of over seven years, the Odisha government has handed over approximately 400 acres of land for the Chandikhol underground crude oil storage project in Jajpur district. The project, estimated to cost ₹8,743 crore (approximately $1.05 billion USD), aims to enhance India's energy security amid rising global tensions.
- 01Odisha government transferred 400 acres for the Chandikhol strategic oil reserve project.
- 02The project has an estimated cost of ₹8,743 crore (approximately $1.05 billion USD).
- 03Delays were caused by land handover issues and illegal stone quarrying.
- 04The facility aims to be the world's largest underground crude oil storage, with a capacity of 4 million tonnes.
- 05Once operational, it will increase India's crude oil storage capacity by 11 days.
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The Odisha government has finally handed over 400 acres of land for the Chandikhol underground strategic crude oil storage project in Jajpur district, resolving a delay of over seven years. The project, sanctioned in December 2018, is being developed by Indian Strategic Petroleum Reserves Limited (ISPRL) at an estimated cost of ₹8,743 crore (approximately $1.05 billion USD). The facility aims to create a 4 million tonne underground rock cavern storage, significantly enhancing India's energy security amid global tensions. Previous delays were attributed to land acquisition issues and illegal quarrying, which have since been addressed. With the land now secured, construction activities are set to begin following the completion of the bidding process. The project will also integrate with existing pipeline networks, improving logistical efficiency during supply disruptions.
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The project will enhance energy security for India, ensuring a more stable supply of crude oil during global disruptions.
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