Explained: Vedanta gets preliminary nod to drill hydrocarbon wells in TN’s rice bowl
Cairn Oil & Gas, a subsidiary of Vedanta Limited, has been granted preliminary clearance to carry out an Environment Impact Assessment (EIA) for its proposed off-shore and on-shore oil and gas and appraisal projects in Tamil Nadu and Puducherry. The Ministry of Environment, Forest and Climate Change (MoEF) gave its nod to Vedanta for the drilling of 274 exploratory wells in the Bay of Bengal, Tamil Nadu’s Nagapattinam and Villupuram, Puducherry and Karaikal, as well as carry out seismic surveys in the hydrocarbon blocks.
While Vedanta had been allocated two hydrocarbons exploration and production licenses by the Ministry of Petroleum and Natural Gas (MoPNG) in 2017, it submitted its application seeking Terms of Reference (ToR) for the EIA in April this year.
In order to get environmental clearance, Vedanta will have to submit its Environment Impact Assessment study, which includes a mandatory public hearing. However, significantly in its application letters to MoEF, Vedanta had sought exemption of the public hearing. “Considering the project activities falling major area in offshore and the temporary and short term nature of the proposed project activities, the Expert Appraisal Committee (EAC) is requested for exemption of the public hearing,” reads Vedanta’s application.
Responding to Vedanta’s applications in a month’s time, the Environment Ministry gave its go-ahead to the projects in two letters dated May 10 and May 12. “In this regard, under the provisions of the EIA Notification 2006 as amended, the Standard TOR for the purpose of preparing environment impact assessment report and environment management plan for obtaining prior environment clearance is prescribed with public consultation,” reads the MoEF letter to Vedanta. This means Vedanta will have to conduct public hearings, something the company wanted to avoid.
Vedanta’s two hydrocarbon projects will cost an estimated Rs 13,550 crore.
Project details
The first hydrocarbon block allocated to Vedanta covers an area of 1794 Sq.km consisting of 139 sq km of Villupuram, 2 sq km of Puducherry and 1654 sq km of sea portion of Bay of Bengal. It proposes to drill 116 exploratory wells in this block. In its project summary report, Vedanta estimates that the cost for each well will average Rs 49 crore.
As for environmental concerns, rivers such the Thenpennai River, the Buckingham Canal, the Falidam River and water bodies like the Kaliveli Lake, the Thengaithittu Estuary and the Osudu Lake are located near this proposed hydrocarbon block.
The second hydrocarbon block covers an area of 2574 sq km and includes the Cauvery Delta region, considered Tamil Nadu's rice bowl. The project spans 142 sq km of Nagapattinam, 39 sq km of Karaikal and 2393 Sq km of sea portion of Bay of Bengal. Vedanta proposes to drill 158 exploratory wells across this block at a depth of 3500 to 4000 metres.
The drilling here will take place 0.49km from the Pichavaram Mangrove Forest, which is a protected forest area and has been identified as a sensitive ecosystem. Besides this, rivers such as the Cauvery River, Uppanar River, Manjalaru, Buckingham Canal, Nadalar River, Vedaranyam Canal among others flow within this block.
In its pre-feasibility report, Vedanta states that it has planned to carry out seismic data acquisition, exploration and appraisal well drilling and well testing over a period of 10-12 years.
Vedanta isn’t the only company that has been granted clearance by the Union Environment Ministry. Oil and Natural Gas Corporation (ONGC) will carry out an EIA study for drilling 67 wells across Cuddalore, Nagapattinam, Bhuvanagiri and Thiruvarur.
TN parties condemn move
Political leaders in Tamil Nadu reacted sharply to the Environment Ministry’s clearance for the hydrocarbon projects. Taking to Twitter, DMK President and Leader of Opposition MK Stalin hit out at the BJP-led Central government and the ruling AIADMK in Tamil Nadu. “Even when they’re on their way home, the BJP government and the AIADMK government have joined hands to give this dangerous permission, and decided to commit treachery against the people of Tamil Nadu. This is condemnable,” he said.
Demanding that the Election Commission cancel the approvals granted by the Union Ministry given that it comes when the Model Code of Conduct is in place, Stalin also notes, “At a time when people in the Cauvery delta region – and indeed, across Tamil Nadu – have been struggling under the weight of draught and drinking water scarcity, AIADMK’s coalition partner BJP’s government has given environmental clearance to dig hydrocarbon wells in Vizhupuram and Puducherry regions.”
PMK founder Ramadoss, whose party is in the NDA, argued that granting Vedanta permission to carry out hydrocarbon projects is dangerous, pointing out that it was responsible for the destruction of marine life in Thoothukudi, where its Sterlite Copper plant is located.
AMMK chief TTV Dhinakaran slammed the AIADMK government, urging Chief Minister Edappadi Palaniswami to raise his opposition to the projects, while VCK’s Thirumavalavan lashed out at the Centre, stating, “Modi’s BJP Government is looking to turn Puducherry, Villupuram areas into graveyard like they did in Thoothukudi by opening the Sterlite factory.”
In 2017, Tamil Nadu’s Neduvasal village witnessed massive protests following the Centre’s nod for a hydrocarbon extraction project.