ISPRL writes to Dharamshala MLA; Dankari Strategic Oil Project gains momentum.
By Akshaya Rout
Jajpur, Feb. 9: A long-pending strategic infrastructure dream in Odisha is moving closer to reality, with the Dankari underground oil storage project entering a decisive phase of implementation. Indian Strategic Petroleum Reserve Limited (ISPRL) has formally communicated the latest progress of the project in a letter to Dharamshala MLA Himanshu Sekhar Sahoo, acknowledging his sustained support and intervention in facilitating the initiative.
According to ISPRL, the project received approval during the 38th High Level Clearance Authority (HLCA) meeting held on January 6 last year. An agreement with IPICOL was signed later that month, followed by a memorandum of understanding with the Odisha government in New Delhi on April 8.
The Jajpur district administration is currently conducting boundary demarcation and pillar-laying work to identify the project area, a process expected to be completed within this month. IDCO has raised a demand of Rs 21 crore towards land cost, which has already been deposited by ISPRL as part of the administrative formalities.
Officials said the tender for the main project is expected to be floated in the first week of March. Tender documents have been prepared and forwarded to the Public Private Partnership Appraisal Committee (PPPAC) for final approval. Government-owned engineering consultancy Engineers India Limited (EIL) has been selected for technical execution of the project.
ISPRL has also stated that company security personnel will take charge of the project site beginning April 1, bringing the area under its security cover.
In its communication, the company expressed gratitude to MLA Sahoo for his “unwavering support” in advancing the Dankari project. As an independent legislator, Sahoo had written multiple letters to government authorities and held several discussions with concerned ministries to push the proposal forward.
Following instructions from the state industries department, the Jajpur district administration halted stone quarrying operations in the identified project zone. Around 400 acres of hilly land under plot number 600 of account number 221 near Dankari hill has been earmarked for the oil storage facility. An official order to stop quarrying in the area was issued on March 29.
Deputy Director of Mines Jayaprakash Nayak confirmed that 113 acres of land required for the initial phase of the project has already been handed over, and mining activity in the designated zone has been suspended to enable construction work.
The Dankari project is expected to strengthen India’s strategic petroleum reserves and enhance energy security, while also bringing significant infrastructure development to the region.