State-run energy giant ONGC has proposed a ₹4,606.35 crore offshore development project in Konaseema, Andhra Pradesh, aimed at boosting India’s oil and gas output under the Discovered Small Field (DSF-III) policy. The plan involves drilling ten development wells, setting up two unmanned platforms, laying offshore pipelines, and building a gas processing terminal at Odalarevu.

While the project promises 150 direct and 310 indirect jobs, the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change (MoEFCC) has deferred its approval for the second time—citing gaps in environmental data and seeking a comprehensive biodiversity assessment along with an Environmental Restoration Action Plan.

ONGC has allocated ₹14 crore for its Environmental Management Plan and an equal amount under Corporate Environmental Responsibility, in addition to ₹3 crore annually for recurring costs. However, the project will remain on hold until the PSU submits the required ecological studies.

Also Read: PM Modi Inaugurates Metro Projects Worth ₹22800 Crore in Bengaluru

The two offshore blocks, awarded to ONGC in September 2022, span 845 sq km and were earmarked to fast-track production under DSF-III. The continued delays highlight the growing regulatory scrutiny on industrial projects in ecologically sensitive coastal and offshore zones.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!