Rs 8,743 crore crude oil facility to come up in Odisha’s Jajpur, to generate around 4,000 jobs

Odisha Chief Minister Mohan Charan Majhi concluded a two-day investment summit in New Delhi on Tuesday, securing commitments worth Rs 1.03 lakh crore investment, including a long-stalled Rs 8,743 crore strategic crude oil reserve at Chandikhol in Jajpur district.

The project, delayed for seven years due to land disputes and hurdles, is now set to advance after the state allocated 600 acres of government-owned land for its construction.

Chandikhol Project: A Boost for Energy Security

The Indian Strategic Petroleum Reserves Limited (ISPRL) will build the 4-million-metric-tonne (MMT) Chandikhol facility, doubling India’s strategic oil storage capacity.

Once operational, it will extend the nation’s emergency crude oil coverage from 9.5 to 17 days, mitigating supply shocks. Approved in 2017 under the Centre’s Phase-II expansion, the project faced delays after Odisha sought alternative sites in 2022 despite completed feasibility studies. 

Notably, ISPRL recently persuaded the state to revert to the original site, avoiding further delays. Meanwhile, the project is expected to create 4,000 daily jobs during construction and 150 permanent roles.

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Project Background & Challenges

Originally proposed in 2014, the project gained momentum in 2021 when the Centre approved two commercial-cum-strategic reserves.

Despite a completed feasibility study and environmental impact assessment by NEERI Nagpur, the then Naveen Patnaik-led government submitted a request in 2022 to explore alternative sites, stalling progress.

ISPRL later convinced the state to revert to Chandikhol’s original site, avoiding costly resurveys. The state allocated 600 acres of government-owned land through IDCO’s single-window clearance, resolving a seven-year impasse.

Decade of Energy Transformation

Over the past decade, Odisha has attracted over Rs 2.04 lakh crore in petroleum investments. Dharmendra Pradhan, former Petroleum Minister, stated the state is poised to become a global energy transition hub, with upcoming projects in LNG terminals, gas pipelines, and city gas distribution. Further, a hydrocarbon skill center will also train 50,000 youths for sector-specific roles.