Oil and Natural Gas Corporation Limited (ONGC) is set to invest INR 8,110 crore for onshore development and production of oil and gas from 172 wells in eight petroleum mining leases (PML) blocks in Andhra Pradesh. The project has received a significant boost after a committee under the Ministry of Environment, Forest, and Climate Change recommended Environmental Clearance for the development in a meeting held last month.

Project Investment and Scope

The ambitious project encompasses the development of 172 onshore wells across eight PML blocks in Andhra Pradesh, representing one of ONGC's major onshore investments in the region. The total estimated project cost stands at INR 8,110 crore, as outlined in the minutes of the Expert Appraisal Committee's meeting. The financial breakdown includes substantial allocations for environmental management.

The capital cost of the Environment Management Plan (EMP) is set at INR 172 crore, while the recurring cost for EMP implementation will be INR 91.16 crore per annum. Additionally, ONGC proposes to allocate INR 11 crore specifically for commitments made during the Public Hearing process.

Environmental Clearance and Regulatory Compliance

The Expert Appraisal Committee has recommended Environmental Clearance for the project, marking a crucial milestone in the development process. However, this approval comes with stringent environmental protection requirements that ONGC must adhere to throughout the project implementation. The committee has directed ONGC to comply with all environmental protection measures and safeguards proposed in the documents submitted to the Ministry.

All recommendations made in the Environmental Impact Assessment (EIA) and the Environment Management Plan, in respect of environmental management and risk mitigation measures relating to the project, must be implemented.

Wildlife Protection Measures

A key environmental safeguard involves protecting the Coringa Wildlife Sanctuary. As committed by ONGC, no well will be set up within 10 kilometers of the eco-sensitive area of Coringa Wildlife Sanctuary, in accordance with the No Objection Certificate (NOC) issued in May this year. Furthermore, the committee has stipulated that no pipelines or any part of the pipeline infrastructure shall be laid in Forest land or Protected Areas without prior permission and approval from the Competent Authority.

This requirement ensures that the project development respects existing protected areas and maintains ecological integrity. The project represents a significant investment in India's domestic oil and gas production capabilities while incorporating comprehensive environmental protection measures. The development of 172 wells across eight blocks in Andhra Pradesh demonstrates ONGC's commitment to expanding onshore production capacity within the framework of ecological compliance and wildlife protection protocols established by regulatory authorities.

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