Vedanta Chairman Anil Agarwal Says India Can Produce Oil and Gas at Half Import Cost

Vedanta Chairman Anil Agarwal has called for accelerated domestic oil and gas exploration, stating that India has the potential to produce hydrocarbons at significantly lower cost than imports, at a time when global energy security is becoming a strategic priority for major economies, as per news reports. 

Domestic Resources and Cost Advantage Highlighted 

In a post on X, Agarwal stressed that India’s dependence on imported hydrocarbons creates vulnerability and that domestic reserves remain underexplored despite strong potential. He said India holds nearly 300 billion barrels of oil and gas equivalent resources and must move faster to unlock them. 

“In today’s turbulent geopolitics, it is critically important for every large nation to secure energy independence. India is vulnerable because we import 90% of our oil and gas.” Agarwal added. 

He added that with the right policy push and exploration drive, India can produce oil and gas at nearly half the cost of imports, reducing long-term exposure to external supply shocks. 

Call For Exploration-Led Policy Push 

Agarwal emphasised that exploration is the foundation of the hydrocarbons business and pointed to the US example, where wider participation and investor-friendly policies transformed the country from an energy importer to a major producer. 

“That [Exploration] is the core of this business. Two decades ago, the US was dependent on hydrocarbon imports and vulnerable. They changed it by opening up exploration to entrepreneurs and making it lucrative for them. Even backyards of homes and farms were explored. Everyone benefited,” Agarwal said. 

He cautioned that investor interest in India remains limited due to procedural risks and uncertainty around licences and approvals. 

“He said the industry and potential investors fear processes, notices, court cases and taking away the licenses. “Today, there are hardly 200 active licences in India when there should be 2,000,” he added.” 

Energy Self-Sufficiency as Strategic Goal 

Positioning energy security alongside India’s past journey toward food self-sufficiency, Agarwal argued that a national mission-style approach is needed to scale domestic production. 

Agarwal said the world doesn’t want India to produce and wants it to be a market. Highlighting the example of food, Agarwal said, “this is a country which used to be import dependent on food. And then became self-sufficient. It all happened because the government created a movement to make the country self-sufficient.” 

He added that while the government is encouraging collaboration and investment, production levels must expand sharply to support long-term growth and the Viksit Bharat vision. 

Read More: Vedanta’s Anil Agarwal Pledges 75% of Wealth for Social Causes! 

Conclusion 

Agarwal said India now needs a stable and supportive environment and must shift from heavy regulation to facilitation in exploration and production to accelerate the journey toward energy independence. 

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