India seeks private investors for Rs 8,571 crore Odisha oil reserve
The government is inviting bids for a 4 million tonne crude storage facility at Chandikhol to bolster energy security.
The Indian government is seeking private investors to develop a strategic petroleum reserve in Chandikhol, Odisha, at an estimated cost of Rs 8,571 crore, according to reports by The Times of India and The Economic Times.
The proposed facility aims to store four million tonnes of crude oil, which would increase the country's current strategic storage capacity by 80 per cent.
The state-owned Indian Strategic Petroleum Reserves Ltd has issued tenders for the Odisha project and for leasing part of the existing Visakhapatnam storage. The government is offering a grant of up to Rs 5,142 crore for the Chandikhol project, with the contract going to the bidder requesting the lowest grant.
These moves follow disruptions in the Strait of Hormuz that cut off approximately 40 per cent of India's crude supplies. The government has also directed Oil and Natural Gas Corp to develop 1.75 million tonnes of capacity in Mangaluru.
The Chandikhol project has been under consideration since 2018 and was previously delayed by land acquisition. The acquisition of approximately 400 acres at the site is now in an advanced stage.
Bids for the Odisha facility must be submitted by February 26, 2027, while the deadline for the Visakhapatnam storage lease is December 1, 2026.