Union Minister Dharmendra Pradhan Calls for Expedited Completion of Chandikhol Strategic Petroleum Reserve
In a significant move to bolster India's energy security, Union Education Minister Dharmendra Pradhan has written separate letters to Odisha Chief Minister Mohan Charan Majhi and Union Petroleum Minister Hardeep Singh Puri, urging them to fast-track the Strategic Petroleum Reserve (SPR) project at Chandikhol in Jajpur district. The minister emphasized the critical importance of this project, particularly in light of the ongoing geopolitical instability in West Asia and the broader global energy landscape.
Project Background and Current Status
The Chandikhol SPR project received Union Cabinet approval on June 27, 2018, under the leadership of Prime Minister Narendra Modi. Despite initial momentum, progress stalled over subsequent years. However, a crucial Memorandum of Understanding (MoU) was signed on April 8, 2025, in New Delhi among EPICL, the Odisha government, and Indian Strategic Petroleum Reserves Limited (ISPRL). This signing ceremony was attended by key stakeholders including Union Ministers Hardeep Singh Puri and Dharmendra Pradhan, along with Odisha Chief Minister Mohan Charan Majhi.
Pradhan, who served as the Union Oil Minister when the project was initially approved, recalled that he had previously written to then-Odisha Chief Minister Naveen Patnaik to advance the initiative. The recent MoU represents a renewed commitment to moving forward with this vital infrastructure project.
Strategic Importance and Economic Impact
With an estimated investment of approximately Rs 8,743 crore, the Chandikhol SPR facility is poised to become the world's largest underground crude oil storage structure. Once operational, it will significantly enhance India's energy preparedness by extending the nation's crude oil supply buffer by an additional 7.12 days. Currently, India maintains a 9.5-day crude reserve capacity, meaning this project will substantially increase the country's strategic cushion against global supply disruptions.
The minister highlighted several key benefits of the project in his correspondence:
- Enhanced Energy Security: The reserve will provide a critical buffer during periods of global price volatility or supply chain disruptions, particularly relevant given the ongoing conflicts in West Asia.
- Economic Stimulus: The project is expected to generate over 5,000 direct and indirect employment opportunities across various sectors.
- Regional Development: Officials anticipate the facility will significantly contribute to Odisha's GDP and catalyze growth in supporting industries such as transportation, hospitality, and construction.
- Strategic Positioning: The project aligns with Prime Minister Narendra Modi's 'Mission Purvodaya' vision, positioning Odisha as a key driver of industrial and economic growth in eastern India.
Geopolitical Context and Urgency
Minister Pradhan specifically referenced the current global situation, noting that geopolitical instability in West Asia underscores the need for strengthened energy preparedness. The ongoing conflicts in the region have created uncertainties in global oil markets, making strategic reserves increasingly important for energy-importing nations like India.
The 4-million-metric-tonne facility at Chandikhol represents a critical component of India's long-term energy strategy. By creating substantial underground storage capacity, India can better manage supply shocks and maintain economic stability during international crises.
In his letters, Pradhan requested both Minister Puri and Chief Minister Majhi to implement measures ensuring swift completion and operationalization of the Chandikhol SPR. The project's advancement is seen as essential not only for national energy security but also for regional economic development and employment generation in Odisha.
