Pradhan, a Member of Parliament from Odisha’s Sambalpur, has written to Union Petroleum Minister Hardeep Singh Puri and Odisha Chief Minister Mohan Charan Majhi, requesting expeditious implementation of the proposed 4 million metric tonnes (MMT) Strategic Petroleum Reserve (SPR) at Chandikhol.
Speaking to mediapersons, Pradhan underlined that the project, approved by the Union Cabinet on June 27, 2018, under the farsighted leadership of Prime Minister Narendra Modi, had seen limited progress for several years. “The project assumes significance amid the heightened global energy security concerns,” he said.
The Union minister said the SPR, which was ignored despite repeated reminders during the previous government in the state, got a fresh push in April 2025 when a Memorandum of Understanding (MoU) was signed in New Delhi between the Odisha government and Indian Strategic Petroleum Reserves Limited (ISPRL), in the presence of key stakeholders.
The Chandikhol SPR, to be developed at an estimated cost of ₹8,743 crore in the Dankari hill region, is envisioned as the world’s largest underground crude oil storage facility. Once operational, it is expected to significantly enhance India’s emergency preparedness by adding approximately 7.12 days to the country’s crude oil reserves.
At present, India has underground storage capacity of 5.33 million tonnes across three facilities operated by ISPRL at Visakhapatnam, Mangalore and Padur, meeting around 10 days of crude oil demand. The Chandikhol project, along with the approved 2.5 MMT expansion at Padur, is expected to raise the country’s strategic reserve capacity to cover nearly 21 days of demand.
The project is crucial for insulating the Indian economy from volatility in global oil prices and supply disruptions, as it will act as a buffer during emergencies. Despite its strategic importance, it has faced persistent delays, primarily due to land acquisition hurdles and ongoing stone quarrying activities at the proposed site.
ISPRL sources said the underground oil reserve will come up in an area of around 400 acres, for which several preparatory activities, including topographic surveys, boundary demarcation and installation of boundary pillars, have been completed. Engineering design has been finalised by Engineers India Limited, and tender documents have been submitted to the Public Private Partnership Appraisal Committee (PPPAC) for final approval, with the main tender expected to be floated soon.
Beyond energy security, the project is expected to generate over 5,000 direct and indirect jobs and stimulate sectors such as construction, logistics and hospitality. It is also likely to strengthen Odisha’s role as a petroleum hub, complementing existing infrastructure at Paradip.
Pradhan emphasised that the project aligns with the Centre’s broader vision of boosting industrial growth in eastern India under the “Mission Purvoday” initiative. He added that timely execution would not only safeguard national energy interests but also contribute significantly to Odisha’s GDP.
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