India is moving ahead with plans to develop its largest underground crude oil storage facility at Chandikhol in Odisha’s Jajpur district, marking a significant step toward strengthening national energy security.
The project will be executed by Indian Strategic Petroleum Reserves Limited and involves the construction of a large underground rock cavern capable of storing substantial volumes of crude oil. Approved in late 2018, the initiative had faced prolonged delays due to land acquisition challenges and concerns related to illegal quarrying activities in the surrounding hill region, which raised safety issues for the site.
After years of administrative hurdles, the Odisha Government has now completed the land transfer process through its industrial infrastructure arm, clearing a major bottleneck and enabling the project to move forward.
Once operational, the facility is expected to significantly enhance India’s strategic petroleum reserves, particularly in the eastern region. It will improve the country’s ability to respond to global supply disruptions and stabilize energy availability during emergencies.
Construction is likely to begin in 2026 following the completion of final formalities and contractor selection. The project is also expected to generate substantial employment opportunities, with thousands of jobs during the construction phase and additional permanent roles after completion.
Odisha Chief Minister Mohan Charan Majhi stated that the project will not only strengthen India’s energy resilience but also contribute to regional economic growth and industrial development.
The Chandikhol storage facility will be strategically linked to key infrastructure, including refineries and the Paradip port, ensuring efficient transportation and distribution of crude oil. Once completed, it is expected to become the largest underground crude storage facility in India and among the largest globally.
