ONGC to invest ₹4,600cr in Andhra, generating over 450 jobs
What's the story
The Oil and Natural Gas Corporation (ONGC) plans to invest over ₹4,600 crore in the Konaseema District of Andhra Pradesh. The investment will be used for oil and gas development activities like drilling wells and setting up processing facilities. The project has been submitted to the Ministry of Environment and Forests (MoEF) for fresh environmental clearance.
Project details
Proposed project details
The proposed ONGC project includes drilling 10 development wells, setting up two unmanned platforms, laying an offshore pipeline, and establishing an onshore gas processing facility. The total land area required for the installation is 26.3 hectares at Odalarevu Terminal. A greenbelt will be developed over a total area of 8.7 hectares or 33% of the total project area.
Project impact
It will generate direct and indirect employment opportunities
The Environmental Management Plan (EMP) for the project has a capital cost of ₹14 crore and a recurring cost of ₹3 crore per annum. The industry plans to allocate ₹14 crore toward an Extended EMP (Corporate Environment Responsibility). The project is expected to create 150 direct jobs and another 310 indirect jobs, thus contributing significantly to local employment.
Committee advice
EAC defers proposal seeking more information
The Experts Appraisal Committee (EAC) had earlier deferred its approval of the proposal in its February 2025 meeting, asking for certain requisite information and inputs from ONGC. In its latest meeting, the EAC again deferred the proposal, seeking more information. Among other recommendations, it advised ONGC to "conduct a comprehensive biodiversity assessment to evaluate the impact of drilling activities" and prepare an environmental restoration action plan with a dedicated budgetary allocation for implementation.