Illegal quarries threaten Rs 8.7K crore Chandikhol oil reserve plan in Odisha

Sources said of more than 87 stone quarries operational in Dharmasala block, 18 are active in and around Dankari hill region where the proposed underground petroleum reserve facility will come up.
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BHUBANESWAR: Illegal quarrying has posed a serious threat to the upcoming strategic petroleum reserve (SPR) facility at Chandikhol in Jajpur district. Indian Strategic Petroleum Reserves Limited (ISPRL) which will be developing the four million tonne (MT) oil reserve at an investment of Rs 8,743 crore has flagged serious concerns and sought immediate action by the state government to halt the quarrying activities before the project feasibility is compromised.

Sources said of more than 87 stone quarries operational in Dharmasala block, 18 are active in and around Dankari hill region where the proposed underground petroleum reserve facility will come up. Quarry operations within the area continue unabated despite environmental concerns, risking both the technical and economic viability of the project.

In a strongly worded communication to the Jajpur collector, chief manager (technical) of ISPRL RK Jena has warned that continued quarrying inside the notified area would jeopardise the upcoming project of national importance and strategic significance, if not stopped at the earliest.

“Quarry operations within the project limits have been continuing despite repeated requests to cease them,” he wrote, requesting the administration to initiate immediate action to safeguard interests of the critical national infrastructure.

The Chandikhol oil reserve, one of the country’s most crucial energy security projects, is expected to play a big role in decentralising crude oil storage and strengthening energy security for the heavily industrialised eastern and northeastern belts. The project also promises massive economic boost for Odisha, including ancillary industry and employment.

According to experts, such oil reserves rely on highly specialised underground rock cavities designed to safely store millions of tonnes of crude oil for a long duration. They pointed out that any unauthorised excavation, blasting or destabilisation of the geological structure within the notified project zone can severely compromise its safety and construction viability.

India currently operates 5.33 MT of underground crude oil reserves at three locations - Visakhapatnam (1.33 MT), Mangalore (1.5 MT) and Padur (2.5 MT). Since the three stockpiles can only meet around 10 days of domestic consumption, the Centre in 2018 had approved two new reserves - a 4 MT facility at Chandikhol and a 2.5 MT expansion at Padur. Once operational, all facilities together would ensure about 21 days of emergency crude oil needs.

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