The Andhra Pradesh government has given a crucial but conditional green light to Vedanta Limited's Cairn Oil & Gas division for a significant onshore drilling project. The state's Water Resources Department has issued a "No Objection Certificate" (NOC) for drilling 20 onshore wells in the Krishna district. This move is part of a broader push to enhance India's domestic energy output.
Conditional Approval for Energy Exploration
According to an official Government Order, the approval was granted after Vedanta Limited submitted a detailed representation. The company stated it was awarded the work for developing an Onshore Oil and Gas Field under the central government's Discovered Small Field (DSF) Policy of 2018. The initial request was for an NOC to drill at 35 locations across various village limits within the block.
The need for state clearance arose because the Bandar Canal passes directly through the centre of the proposed exploration block. After a thorough review, the government decided to permit drilling at 20 specified locations. However, this permission is strictly temporary and issued solely from an irrigation perspective, meaning other regulatory and environmental clearances are still required.
Stringent Terms and Key Responsibilities
The government order lays out clear and non-negotiable conditions. A primary stipulation is that no water shall be drawn from local irrigation sources. This includes the Bandar Canal, the Krishna Delta System (KDS) canal network, drainage systems, ponds, reservoirs, or any other surface-water body in the area.
Furthermore, Vedanta must obtain all other necessary permissions from concerned departments before commencing any on-ground operations. The order mandates specific officials to oversee compliance. The Engineer-in-Chief (Irrigation) of the Water Resources Department in Vijayawada, the Chief Engineer of the Krishna Delta System, and the Collector of Krishna District have been directed to take necessary action based on this order.
Boosting India's Domestic Production
This project aligns with Vedanta's ambitious goal to significantly increase its share of India's domestic crude oil production. Cairn Oil & Gas is already India's largest private oil and gas exploration and production company, contributing roughly a quarter of the nation's domestic crude output. The company has publicly stated its vision to raise this contribution to 50% through sustainable and responsible practices.
The approval for drilling in Krishna district under the DSF Policy represents a concrete step towards tapping smaller hydrocarbon discoveries and reducing the country's reliance on energy imports. The success of such projects is crucial for India's energy security strategy.
