The Andhra Pradesh government has granted a conditional No Objection Certificate to Vedanta Limited for drilling 20 onshore oil and gas wells in Krishna district. This move, announced on December 26, 2025, aims to boost India’s domestic energy production under strict environmental rules, addressing the nation’s growing need for oil and gas amid global supply challenges.
This approval comes at a time when India is pushing to increase local output to cut import reliance. Vedanta, a major player in the sector, plans to develop these wells as part of the Discovered Small Field Policy from 2018, which encourages exploration in smaller oil fields.
Background on the Approval Process
Vedanta applied for the NOC from the state’s Water Resources Department because the project site involves areas near the Bandar Canal. The government reviewed the request carefully, focusing on water safety and land use.
Officials issued the certificate with conditions to protect local resources. This follows similar nods in other states, showing a balanced approach to energy growth and regulation.
The timing aligns with recent national efforts to expand oil exploration. For instance, earlier in 2025, the central government announced incentives for private firms to invest in untapped fields.
Project Details and Scope
The wells will be drilled in various villages within Krishna district, a region known for its potential in the Krishna Godavari Basin. Vedanta’s Cairn Oil and Gas division leads the effort, targeting both oil and natural gas.
This project is expected to start soon, pending other clearances like environmental approvals. Company executives say it could add thousands of barrels per day to production.
Vedanta has outlined plans for safe drilling methods, including advanced technology to minimize leaks and spills. The firm aims to complete initial drilling within the next year.
Here are key features of the project:
- Location: Onshore sites in Krishna district, near agricultural lands.
- Number of wells: 20, focused on exploration and production.
- Policy framework: Under the 2018 Discovered Small Field initiative.
- Expected output: Potential for significant oil and gas yields, contributing to national energy goals.
Local Concerns and Environmental Impact
Villagers and activists in Krishna district have raised worries about the drilling. They fear it could harm farmland, water sources, and wildlife in the area.
Protests have emerged, with locals questioning the long-term effects on the environment. Some reports highlight past incidents in similar projects where pollution affected communities.
The government’s conditional NOC includes rules to address these issues, such as bans on using canal water and requirements for regular monitoring.
Despite concerns, supporters argue the project will create jobs and boost the local economy. Estimates suggest hundreds of employment opportunities during construction and operation.
Environmental groups call for more public hearings before full work begins. This echoes debates in other Indian states over balancing development and sustainability.
Vedanta’s Broader Role in Energy
Vedanta Limited stands as India’s largest private oil and gas explorer. The company operates in multiple states and has a track record of increasing production through innovative techniques.
In recent years, Vedanta has expanded globally, partnering with firms for advanced drilling tech. This Andhra project fits into their $5 billion expansion plan announced earlier in 2025.
The firm also invests in renewable energy, showing a shift toward mixed sources. This helps India meet its targets under international climate agreements.
| Recent Vedanta Projects | Location | Status | Key Outcome |
|---|---|---|---|
| Rajasthan Oil Fields | Rajasthan | Ongoing | Boosted daily output by 20% |
| Offshore Exploration | Gujarat Coast | In Progress | New gas discoveries |
| Andhra Onshore Wells | Krishna District | Approved | 20 wells for oil and gas |
| Renewable Initiatives | Multiple States | Expanding | Solar and wind additions |
This table shows Vedanta’s active role in diversifying India’s energy mix.
Future Implications for India’s Oil Sector
This NOC could pave the way for more private investments in Andhra Pradesh. The state has seen growing interest in the Krishna Godavari Basin, with recent finds by public firms like ONGC.
In 2024, ONGC started production from deep-sea wells in the same basin, adding 45,000 barrels per day. Vedanta’s project might complement these efforts, potentially raising total output.
Experts predict this will help reduce India’s oil import bill, which hit record highs in 2025 due to global prices. It also supports the push for energy security amid geopolitical tensions.
However, success depends on meeting all conditions and gaining community support. Delays from protests or regulatory hurdles could slow progress.
As India aims for self-reliance in energy, projects like this highlight the need for careful planning. Stakeholders hope it sets a positive example for future developments.
What do you think about this oil drilling approval? Share your views in the comments below and spread the word by sharing this article with others interested in energy news.
