Union minister Dharmendra Pradhan has urged fast-tracking of the proposed strategic petroleum reserve at Chandikhol in Odisha’s Jajpur district, bringing the long-pending project back into focus amid the ongoing energy crisis triggered by the West Asia turmoil.

Announced in 2017 by Union finance minister Nirmala Sitharaman, the project envisages storing crude oil in underground facilities with a capacity of four million metric tonnes at Chandikhol, about 100 km from Bhubaneswar.

The reserve is expected to meet 7.12 days of the country’s crude oil requirement.

The plan proposes to develop the reserve over 400 acres. The Union Cabinet approved the project on June 27, 2018, with an investment of ₹8,743 crore. In 2021, then Union secretary for petroleum and natural gas, Tarun Kapoor, visited Odisha and held discussions with the state government.

However, the project has seen no progress so far.

Chandikhol is well connected to Paradip Port, about 80km away, by a four-lane road. According to the plan, crude oil would be unloaded at Paradip and transported to the reserve through pipelines, besides tanker movement.

Pradhan, who earlier held the petroleum and natural gas portfolio, on Wednesday urged petroleum and natural gas minister Hardeep Singh Puri and chief minister Mohan Charan Majhi to fast-track the proposed Strategic Petroleum Reserve.

He also indicated that delays occurred due to multiple factors, suggesting a lack of initiative by the previous BJD government.

“The proposed 4 million metric tonne capacity SPR project is aimed at strengthening the country’s energy security in the future,” Pradhan said in his letter to Puri
and Majhi.

“Considering the current situation, early commencement of the project will be a significant step towards securing the country’s oil reserves,” he added.

He said the SPR would act as a buffer during periods of global oil price volatility or supply disruptions.

Pradhan also recalled his meeting with Puri and Majhi on April 8, 2025, in New Delhi during the signing of a memorandum of understanding between the Industrial Promotion & Investment Corporation of Odisha Limited, the state government, and Indian Strategic Petroleum Reserve Limited.

He further noted that the project would contribute to Odisha’s GDP and boost sectors such as transport, hospitality and construction.