Bhubaneswar, May 18 (BNP): Odisha is poised to play a pivotal role in strengthening India’s energy security, with Chandikhol set to emerge as a major strategic crude oil storage hub under a significant India-UAE energy partnership formalized during Prime Minister Narendra Modi’s recent visit to the United Arab Emirates.
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Under the proposed initiative, Chandikhol will house a massive underground strategic petroleum reserve with a storage capacity of nearly 40 lakh metric tonnes of crude oil. Estimated at around Rs 8,743 crore, the project is expected to significantly enhance India’s emergency fuel preparedness and strengthen long-term energy resilience.
The agreement for the project was signed between the Indian Strategic Petroleum Reserves Limited and the Abu Dhabi National Oil Company during Prime Minister Modi’s visit, following discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan. The partnership is seen as a major step toward deepening bilateral cooperation in the energy sector and reinforcing India-UAE strategic ties.
Although the Union Cabinet had approved the project in 2018, implementation was delayed due to land acquisition-related challenges. With renewed focus and momentum, the project is now expected to move forward, positioning Odisha as an important pillar in India’s petroleum infrastructure network.
Experts believe the underground reserve will play a vital role during emergency or war-like situations by helping maintain fuel availability in the event of disruptions to global crude oil supplies. The facility is also expected to strengthen India’s strategic fuel reserves and improve preparedness against international supply uncertainties.
Once operational, the project is likely to boost industrial growth, infrastructure development and employment opportunities in Odisha, further reinforcing the state’s growing importance in India’s energy and industrial ecosystem.