Anil Agarwal, Chairman, Vedanta, in his X post
In today’s volatile geopolitical landscape, ensuring self-reliance in the energy sector has become imperative for every major nation. Since India meets approximately 90% of its oil and gas requirements through imports, we find ourselves in a highly vulnerable position in this regard. Given that we are surrounded by the sea on three sides, there remains a persistent threat of naval blockades during times of war or heightened tension. Under these circumstances, we have no alternative but to boost domestic production. India is the world’s fastest-growing oil and gas market, and demand is projected to continue rising steadily for at least the next 20 years.
Fortunately, India is endowed with immense natural resources. We possess a potential resource base equivalent to approximately 300 billion barrels of oil and gas—a capacity 30 times greater than that of nations like Guyana. We are also home to a wealth of talented entrepreneurs, a vibrant youth demographic, and innovative startups. Across the globe—including in the US, the Middle East, and Europe—approximately 10% of the experts in this industry are Indians. In other words, we face no shortage of talent. What we require most urgently is exploration, which serves as the very bedrock of this industry. Two decades ago, even the United States was dependent on oil and gas imports. Subsequently, the US opened up exploration opportunities to entrepreneurs; the process was made so accessible that exploration activities were conducted even in the backyards of homes and farms, yielding benefits for everyone involved.
I have been actively involved in this industry for the past 15 years, and I can state with absolute confidence that we are capable of producing oil and gas at half the cost of imports. Furthermore, we have, to date, contributed approximately $40 billion to the government exchequer. Over the years, Cairn has produced 1.3 billion barrels of oil. This industry is one of the few sectors that do not currently benefit from government incentive schemes such as the PLI (Production Linked Incentive) scheme.
To unlock India’s full potential, extensive exploration is absolutely essential. Currently, there are barely 20 exploration licenses in India, whereas the number ought to be around 2,000. Stakeholders in this industry remain apprehensive due to concerns regarding investment hurdles, regulatory notices, legal disputes, and the fear of license cancellations. Even a single notice or legal dispute involving the public sector can trigger anxiety among international investors. This situation reminds me of the Ghana Bird Sanctuary in Bharatpur, where migratory birds from across the globe—some flying in from as far as 5,000 miles away—once flocked in large numbers. It had the potential to become the world’s premier bird sanctuary; however, following incidents of bird poaching 10–15 years ago, the birds ceased to visit. It subsequently took years to restore a conducive environment. The same principle applies to the investment climate.
The global community does not wish for India to produce its own crude oil and gas; rather, it prefers that India remain merely a massive market for these commodities. However, domestic production generates employment—a fact that has been proven in numerous parts of the world. We must counter this trend and strive to achieve self-reliance. This is the very same nation that was once dependent on food grain imports but subsequently achieved self-sufficiency. This transformation was made possible because the government elevated the pursuit of self-reliance into a national movement.
Today, the entire world is actively engaged in securing its energy and mineral resources. India, too, must rapidly harness the resources lying beneath its soil. The government is actively encouraging investment, collaboration, and development. At Vedanta, our objective is to increase production fivefold. To meet its future requirements and realize the vision of a ‘Developed India,’ the nation must boost its production tenfold.
It is my dream to see thousands of drilling rigs operating across the length and breadth of the country. I envision startups and small entrepreneurs leasing these rigs—with an investment of approximately ₹5 crore—to embark on exploration activities. What we need most, above all else, is a stable and supportive environment. Now is the right time to move beyond tight regulations and establish a framework that encourages exploration and production, enabling the country to advance towards self-reliance in the energy sector.
We still have a long journey ahead of https://fnnnews.in/us—but our potential is extraordinary.
