Jajpur: The Centre’s proposal to set up a strategic oil reserve near Chandikhole in Jajpur district has failed to make any headway as the state government is yet to take a call on the closure of black granite mines on the foothills of Dankari hills under Dharmasala block, a report said. Although the establishment of India’s fourth largest underground oil storage facility at Chandikhole had received approval from the Union Cabinet, an assessment report submitted by the district administration then feared that the proposed project would entail a revenue loss of Rs 1,413.86 crore due to the closure of 16 black granite mines. Chatters were abuzz that a vested interest group at work to stall the project. The Dankari hills, known for their abundant reserves of minor minerals and valuable granite stones, were initially earmarked for the oil storage facility. Indian Strategic Petroleum Reserves Limited (ISPRL) deputy CEO Ajay Das clarified that only 15 per cent of the Dankari area would be utilised for the proposed facility. Despite these assurances, the project has remained in limbo for six years.
Meanwhile, the state government has planned to establish an underground diesel storage facility in Barada mouza, adjacent to Dankari hills.
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Notably, Barada mouza houses five valuable black granite mines, raising concerns that these mines might need to be shut down for safety and security reasons. This scenario has sparked scepticism about the viability of the proposed underground diesel storage project, leaving its success uncertain. According to a letter from the executive engineer of Rural Development Department, Jaraka Division, the state government has proposed establishment of a ground-level diesel storage depot in Barada mouza. The executive engineer (via letter number 5076, dated- November 12, 2024) has issued a no objection certificate (NOC) to the Additional District Magistrate of Jajpur, indicating that the project would not face any major hurdles if it is established. However, details such as project costs, required land area, and other related aspects are not yet available. Notably, five black stone quarries are in operation in Barada mouza spanning over 40 acre of land. Four of these quarries are leased to Ajit Sahu, and one to Prakash Nayak. However, operations at Ajit Sahu’s quarries have reportedly ceased following a penalty notice. The state government earns annual revenue of around Rs 2 crore from these quarries in Barada mouza. It is alleged that revenue being earned from the quarries and the influence of local stakeholders might be contributing to delays in the establishment of underground crude oil project.
Observers argue that the feasibility and execution of this project remain uncertain. This development highlights the interplay between existing revenue-generating activities and new infrastructure proposals, which may require further scrutiny to assess long-term viability.