Odisha govt urged to expedite strategic oil reserve project sanctioned 7 yrs ago amid Iran war: Report

Amid the Iran war that has slowed down the supply of oil globally, the Indian Strategic Petroleum Reserves (ISPRL) has reportedly urged the Odisha government to expedite the land allotment process for a project that was sanctioned in 2018. 

According to a report in Business Standard, the government wants the early commissioning of the strategic petroleum reserve project in Jaipur. The proposed 4 million tonne strategic oil reserve is expected to be developed at an estimated cost of Rs 8,743 crore in the Dankari hill region, the report added.

The project has, since its sanction, faced delays due to land handover and illegal stone quarrying. 

The report added that ISPRL that functions under the Ministry of Petroleum and Natural Gas had identified 400 acres of land for the project in early 2019. The state government is yet to execute the lease deed, the report stated. The proposal received approval from the High-Level Clearance Authority (HLCA) in January last year, and the memorandum of understanding (MoU) was signed with the Industrial Promotion and Investment Corporation of Odisha in the same month. 

The company has completed all the preliminary work, and the tender documents have been sent to the Public Private Partnership Appraisal Committee (PPPAC) for final recommendation and approval. The engineering design has also been finalised by Engineers India Ltd.

ISPRL Chief Manager (Technical) R K Jena told the daily that the land was expected to be available by April. He said that of the 400 acres, Idco started finalising the lease deed for 286 acres and the rest would be done in two months. Once the land is handed over, the bidding process would start, and the construction would start at least five months after the bidding. 

ISPRL has also written to the departments of Revenue and Disaster Management, Industries and Steel and Mines, besides the Minor Minerals Directorate and Jajpur administration to look into the issue of illegal quarrying. 

India currently has underground crude oil storage at three locations – Visakhapatnam, Mangalore, and Padur.