The Andhra Pradesh government has issued a conditional No Objection Certificate to Vedanta Limited's Cairn Oil & Gas Division for drilling 20 onshore wells in Krishna district. The approval comes after the company submitted a representation to the state's Water Resources Department requesting permission for oil and gas development operations.

Government Approval and Initial Request

According to a recent Government Order, Vedanta Limited (Cairn Oil & Gas Division) submitted a representation stating that their firm was awarded the work of development of the Onshore Oil and Gas Field under the Discovered Small Field (DSF) Policy, 2018. The company initially requested a No Objection Certificate for drilling wells at 35 locations in the block located in various village limits for Onshore Oil and Gas Development and Production.

The request was made to the Water Resources Department of Andhra Pradesh because the Bandar Canal passes through the center of the proposed block. After careful examination of the matter, the government issued the No Objection Certificate to Vedanta Limited (Cairn Oil & Gas Division), Mumbai, for drilling 20 wells at specified locations, subject to terms and conditions outlined in the order.

Regulatory Framework and Conditions

The approval is strictly conditional and comes with several important restrictions. According to the order, the NoC can be issued only from the irrigation point of view and is purely temporary in nature. The company must obtain all required permissions from the departments concerned before commencing operations, as per established norms.

A critical condition of the approval prohibits the drawing of water from irrigation canal sources. Specifically, no water shall be drawn from irrigation canal sources, such as the Bandar Canal, the KDS canal network, the drainage network, ponds, reservoirs, or any other surface-water source. This restriction appears designed to protect the region's water resources and irrigation infrastructure.

Administrative Implementation

The government order designates specific officials responsible for implementing the decision. The Engineer-in-Chief (Irrigation), Water Resources Department, Vijayawada, the Chief Engineer, Krishna Delta System, Vijayawada, and the Collector of Krishna District shall take necessary action accordingly to ensure compliance with the approval conditions.

The involvement of these multiple administrative levels underscores the project's significance and the need for coordinated oversight across government departments. The Krishna Delta System, in particular, plays a crucial role given the presence of the Bandar Canal in the proposed drilling area.

Company Profile and Industry Position

Cairn Oil & Gas, a division of Vedanta Limited, is India's largest private oil and gas exploration and production company. The company currently contributes approximately a quarter of the country's domestic crude production. According to the company's stated objectives, it aims to increase this contribution to 50 percent through sustainable and responsible practices.

The approval for the Krishna district project represents part of the company's broader expansion efforts in India's oil and gas sector. The Discovered Small Field Policy of 2018, under which Vedanta was awarded this particular development work, is designed to accelerate the exploration and production of smaller oil and gas fields that might otherwise remain undeveloped.

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