Deep Reserves, High Stakes: The ₹8,700 Cr Chandikhol Project

The Odisha government has handed over land for the development of a strategic crude oil storage facility at Chandikhol in Jajpur district, marking a key step in strengthening India’s energy security infrastructure.

The district administration has executed a lease deed for approximately 400 acres in the Dankari hill region, clearing a major administrative hurdle for the project. The facility will be developed by Indian Strategic Petroleum Reserves Ltd (ISPRL) at an estimated cost of ₹8,700 crore.

Once completed, the project will have a planned storage capacity of four million tonnes of crude oil, making it one of the largest underground rock cavern storage systems globally. It is designed to bolster India’s strategic petroleum reserves and ensure the availability of emergency crude supplies during global disruptions.

With project execution now progressing, the development is expected to generate significant economic benefits for the region. It is also likely to attract downstream industries to the Jajpur–Chandikhol corridor and enhance the overall ease of doing business in the area.

News by Rahul Yelligetti.