Bhubaneswar: The construction work for the crude oil storage facility of the Indian Strategic Petroleum Reserves Limited (ISPRL) at Chandikhol in Odisha’s Jajpur district will commence soon. The state government has handed over the land, earmarked for the project, to the ISPRL.

The ISPRL had signed a Memorandum of Understanding (MoU) with the state government on April 8 last year for establishment of the strategic petroleum reserve (SPR) at Chandikhol.

The project also includes an onshore pipeline from Paradip and a proposed offshore oil terminal through a Single Point Mooring (SPM) for transhipment operations.

With a proposed investment of Rs 4,377.46 crore and a storage capacity of 4.00 million metric tonnes, the Chandikhol facility is set to become the largest strategic crude oil storage project in the country. The reserve will be connected to Paradip through pipelines and integrated with the existing Indian Oil Corporation pipeline network serving Haldia, Paradip and Barauni refineries.

“The successful handover of land for the project marks a significant milestone and is a notable achievement for the state. It reflects sustained monitoring, swift decision-making and strong inter-departmental coordination at the highest level. Chief Minister Mohan Charan Majhi played a critical role in driving the project forward by ensuring that the required approvals and procedural clearances were obtained in a timely manner,” said the ISPRL.

The Chief Minister personally reviewed the progress of the project through bi-monthly meetings to ensure that each milestone moved ahead without delay. Under his close guidance, land survey, boundary demarcation and pillar posting were carried out smoothly and have now been successfully completed. The project is moving as per schedule, and construction activities at the site are expected to commence shortly, it added.

“The project had faced several hurdles on the ground, including the presence of illegal quarries within the project site. The state government under the leadership of the Chief Minister took decisive steps and secured the land for the project. This intervention proved crucial in moving the project from planning to implementation stage,” said the ISPRL.  

Welcoming this development, leading industry associations, including the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (FICCI), the Associated Chambers of Commerce and Industry of India (ASSOCHAM), and Utkal Chamber of Commerce & Industry Ltd. (UCCI), have expressed their gratitude to the Chief Minister for providing the necessary support for the project.