Bhubaneswar: Union Minister Dharmendra Pradhan on Wednesday urged Petroleum and Natural Gas Minister Hardeep Singh Puri and Odisha Chief Minister Mohan Charan Majhi to expedite the implementation of the proposed Strategic Petroleum Reserve (SPR) project at Chandikhole in Jajpur district.
In separate communications to the two leaders, Pradhan stressed the urgency of fast-tracking the 4 million metric tonne (MMT) capacity project, citing its strategic importance in strengthening India’s energy security amid global uncertainties.
The push for the project comes against the backdrop of disruptions in crude oil, natural gas and LPG supplies from Gulf nations following conflict in West Asia, which has highlighted India’s vulnerability due to its heavy reliance on energy imports.
Pradhan noted that the Union Cabinet had approved the Chandikhole SPR project on June 27, 2018, with an estimated investment of Rs 8,743 crore. While initial progress had stalled, he said momentum picked up after a Memorandum of Understanding (MoU) was signed on April 8, 2025, in New Delhi in the presence of Puri and Majhi between the Industrial Promotion and Investment Corporation of Odisha Limited and the Indian Strategic Petroleum Reserve Limited.
Calling for early completion and operationalisation, Pradhan said the facility, once built, would be among the world’s largest underground crude oil storage sites. He added that the project is expected to generate over 5,000 direct and indirect employment opportunities.
Highlighting its strategic value, Pradhan said India currently has crude oil storage capacity equivalent to about 9.5 days of consumption. The Chandikhole SPR would add another 7.12 days, significantly enhancing the country’s ability to manage supply disruptions and price volatility in global markets.
He further said the project would contribute substantially to Odisha’s gross domestic product while providing a boost to sectors such as transport, hospitality and construction. The storage facility would act as a critical buffer stock during emergencies, he added.
Pradhan also emphasised that the project aligns with Prime Minister Narendra Modi’s ‘Mission Purvoday’ vision, positioning Odisha as a key driver of industrial and economic growth in eastern India.
India, the world’s third-largest energy consumer, currently depends on imports for nearly 88 per cent of its crude oil needs. The country has already established strategic petroleum reserves with a combined capacity of 5.33 million tonnes at Visakhapatnam in Andhra Pradesh, and Mangaluru and Padur in Karnataka.
