Vedanta Secures NOC for 20-Well Oil and Gas Exploration in Andhra Pradesh

The Andhra Pradesh government has approved a conditional clearance for Vedanta Limited’s Cairn Oil & Gas Division to proceed with limited onshore drilling activity in Krishna district, as per PTI reports. 

The permission forms part of the company’s development plans under India’s Discovered Small Field (DSF) Policy, 2018. 

Drilling Approval and Scope 

According to a recent government order, Vedanta had sought approval to drill wells at 35 locations across multiple villages within the onshore oil and gas block.  

After review, the state granted a No Objection Certificate for drilling 20 wells, restricting the approval to specific locations listed in the order. 

The proposed drilling area intersects with the Bandar Canal, prompting scrutiny from the state’s Water Resources Department before clearance was issued. 

Conditions Attached to the NOC 

The government clarified that the approval is limited strictly to irrigation-related considerations and is temporary in nature. Vedanta must secure all additional statutory and departmental approvals before starting any drilling operations. 

The order explicitly bars the company from drawing water from irrigation infrastructure, including the Bandar Canal, Krishna Delta System canals, drainage channels, ponds, reservoirs or any other surface water sources. 

Implementation and Oversight 

Responsibility for implementation has been assigned to senior irrigation and district authorities, including the Engineer-in-Chief of the Water Resources Department, the Chief Engineer of the Krishna Delta System, and the District Collector of Krishna.  

These officials have been instructed to ensure compliance with the conditions outlined in the approval. 

Read More: Vedanta Share Price Gains for the 10th Consecutive Session amid Demerger Plan! 

Vedanta Share Price Performance  

As of December 26, 2025, at 11:19 AM, Vedanta share price is trading at ₹600.05 per share, reflecting a surge of 0.32% from the previous closing price.  

Conclusion 

The conditional clearance allows Vedanta’s Cairn Oil & Gas Division to move forward with a scaled-down onshore drilling programme in Andhra Pradesh while safeguarding irrigation assets and water availability. The decision reflects the state’s attempt to balance hydrocarbon development with environmental and resource protection, with operations permitted only under close administrative oversight. 

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