Odisha to have underground crude oil reserve at Chandikhol

The Centre urged the Odisha government to cooperate with it in the establishment of the proposed Strategic Petroleum Reserve (SPR) facility at Chandikhol.

The Centre’s move was apprised to the state government when Sanjay Sudhi, the joint secretary in the Ministry of Petroleum and Natural Gas, met Odisha Chief Secretary A P Padhi at the state secretariat.

The Odisha government on Wednesday assured the Centre that the state will extend all support for setting up a strategic petroleum reserve facility at Chandikhol in Jajpur district, an official said on Wednesday.

Since the facility will be an underground strategic oil reserve for eastern India and generate employment for 4,000 people during the construction phase, the state government should cooperate in establishing the project, Sudhir told reporters.

He said the Odisha government has assured the central government of support in setting up the SPR.

Sudhir said the proposed SPR in Jajpur district with 4 million metric ton capacity will be built over 400 acre of land, at an investment of Rs 6,500 crore. The project would also include a pipeline from Chandikhole to Paradip.

The oil ministry official said that experts from both the Centre and the state government will soon meet to discuss the modalities of implementation of the project.

The Union Cabinet had approved establishment of additional 6.5 million metric ton SPR facilities at two locations in Odisha and Karnataka.

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