In Jajpur, the local administration has embarked on a significant project to create India's fourth-largest underground oil storage facility, part of the Indian Strategic Petroleum Reserve (ISPR), located at the base of Dankari hill in the Dharmasala tehsil.

Collector P Anvesha Reddy has communicated directives via a letter (No 5768/ Dt. 16/04/2025) to the Deputy Director of Mines and the Dharmasala tehsildar, mandating an immediate cessation of activities in 13 black stone mines within the designated 400 acres of land on Dankari hill.

Despite the issuance of this directive, there has been little action from either the Mines or Revenue departments, even after a fortnight has passed since the order.

An agreement for the ISPR was formalized between the state government and SPR authorities on January 28, 2025. This initiative aims to bolster national energy security and support Odisha's development, a vision championed by former Petroleum Minister Dharmendra Pradhan, with a planned storage capacity of 4 million tonnes (MT).

The project is expected to require an investment of approximately Rs 8,743 crore, designed to enhance crude oil distribution capabilities during emergencies in eastern India. The Ministry of Petroleum had previously requested the state Chief Secretary to secure the necessary land by July 29, 2019.

In the 2017-18 Union Budget, the central government allocated Rs 3,800 crore for this underground oil reserve initiative. However, the presence of numerous black stone quarries in the proposed site has led to delays, as the previous BJD government struggled to provide the required land. Allegations surfaced that the inaction of the former government allowed illegal black stone mining operations to flourish, further complicating the project's progress.