Jajpur: The Jajpur district administration has initiated steps for establishment of the country’s fourth-largest underground oil storage facility, known as Indian Strategic Petroleum Reserve (ISPR), at the foothills of Dankari hill in Dharmasala tehsil area.
As part of this process, Jajpur Collector P Anvesha Reddy, through a letter (No 5768/ Dt. 16/04/2025) has issued instructions to the Deputy Director of Mines (DDM) and Dharmasala tehsildar to immediately halt operations in 13 black stone mines operating across the identified 400 acres of land in Dankari hill.
However, neither the Mines department nor the Revenue department has reportedly initiated any significant action, though 14 days have elapsed to the passing of the directive.
An agreement regarding ISPR was signed between the state government and SPR authorities January 28, 2025. To ensure national energy security and contribute to the development of Odisha, efforts were made by the then Petroleum Minister Dharmendra Pradhan to establish this project with a storage capacity of 4 million tonne (MT).
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An estimated investment of Rs 8,743 crore was proposed for the project. The objective of the project was to facilitate crude oil distribution during emergencies in the eastern region of the country. Accordingly, the Ministry of Petroleum had requested the Chief Secretary of the state to provide the necessary land by July 29 in 2019.
In 2017-18 Union Budget, the Centre had allocated Rs 3,800 crore for this underground oil reserve project. However, due to the presence of multiple black stone quarries in the proposed area, the process got delayed and the then BJD government could not provide the required land. It was also alleged that owing to the inaction by the then government, illegal black stone mining operators felt protected and continued to operate, thereby leaving the project in limbo.
PNN
