The Andhra Pradesh government has granted a conditional No Objection Certificate (NOC) to Vedanta Ltd for drilling 20 onshore oil and gas wells in Krishna district. The clearance has been issued to Cairn Oil & Gas, Vedanta’s oil and gas arm, under the Centre’s Discovered Small Field (DSF) Policy, which aims to boost domestic energy production.
Vedanta had originally proposed drilling at 35 locations in the region. However, after detailed scrutiny by the state’s irrigation and water resources departments, approval was limited to 20 sites. Officials said the decision was taken to ensure that oil and gas exploration does not affect the Krishna Delta’s extensive irrigation network, which supports thousands of farmers.
The NOC comes with strict safeguards. Vedanta has been clearly instructed not to draw water from canals, reservoirs, drainage systems, ponds or any other irrigation-linked water bodies for its drilling activities. Authorities have underlined that protecting water availability for agriculture remains a top priority, especially in canal-fed areas like Krishna district.
The state government also clarified that this NOC is only related to irrigation concerns. Vedanta must still obtain all other mandatory approvals, including environmental clearances, pollution control permissions and local administrative consents, before starting drilling operations. Any violation of the conditions could lead to withdrawal of the approval, officials warned.
The move reflects Andhra Pradesh’s effort to strike a balance between supporting energy exploration and safeguarding critical natural resources. Onshore oil and gas blocks developed under the DSF policy are seen as quicker and more economical to develop compared to offshore fields. They also align with India’s broader objective of reducing dependence on imported crude oil and gas.
Vedanta’s Cairn Oil & Gas is one of India’s largest private-sector oil producers and plays a significant role in domestic energy supply. With the conditional clearance now in place, the company can move forward with preparatory work, while closely adhering to the safeguards laid down by the state.
The government has said it will closely monitor the project to ensure compliance and protect the interests of farmers and local communities as exploration progresses.