BHUBANESWAR: As the Centre’s proposal to set up a strategic oil reserve near Chandikhole in Jajpur district making little headway due to land issues, the State Government on Thursday told the Ministry of Petroleum and Natural Gas that land acquisition would be possible only after assessment of mineral deposits at the identified site. Joint Secretary in the Ministry of Petroleum and Natural Gas Sunjay Sushir discussed the land acquisition issue with Chief Secretary AP Padhi at a high-level meeting here.
As the identified site is located on the foothills of Dankari, the major source of stone and laterite soil for construction activities, the State Government reportedly told Sudhir that the land required for the project could be handed over only after assessing the deposit of minor minerals and the time needed for its extraction.
“It was decided at the meeting that a technical team will assess the mineral reserve at Dankari and the time required for its extraction. A decision on handing over land will be taken after getting a report from the technical team,” sources said. Sudhir, however, told the media that the meeting was very fruitful and the State Government assured to extend all cooperation.
A team of officials from the Ministry had identified 400 acre of land on the foothills of Dankari under Dharmasala tehsil of Jajpur for the proposed underground rock cavern in September, 2016. The State Government is yet to provide land for the project which received budgetary support from the Ministry of Finance in 2017.
“We have proposed to the State Government to send an official team to Padur in Karnataka to see the crude oil storage facility there,” Sudhir said. He said the 2.5 million tonne underground reserve at Padur has been set up on rocky ground. Replying to a question, the Union Joint Secretary said the project received Cabinet approval in June this year.
The detailed project report has been prepared and work on the project will start soon after land is available.The Chandikole facility will have a storage capacity of four million tonne and is estimated to cost around Rs 6,500 crore.