Vedanta in the North East: Will costs exceed benefits? – 22 Feb 2023

Vedanta is going through an approval process for one of its North East projects

What will be produced is 12 mmscmf of gas and 6000 bpd of oil

Clearly, the economics is great, given the cost and the daily proposed output

But then there is always a cost involved. Four wells are inside a pristine, very ecologically sensitive zone. Further, one of the wells is just half a km from an equally pristine river.

Under an amendment, the environment ministry has said that a B2 project, under which Vendanta says it qualifies, the E&P job does not need a public hearing. Is that a mistake, to do away with a consultation process once again with people who have lived of these lands for dozens if not hundreds of generations? How should a project where E&P production will take place be qualified as a B2 project when there is so much at stake?

In the name of development, is the government sometimes in a hurry to push these projects, for they bring in money, but then there is always a huge cost that subsequent generations have to pay?

Since oil is fungible, and we have sufficient foreign exchange reserves, is it best to import oil than spoil whatever is left of our unpolluted rivers and forests, in what is a very beautiful part of our country?

In really pristine areas of the North East, even though Vendanta will no doubt follow a good environment damage mitigation plan, shouldn't the cost and benefits be weighed with more care than elsewhere.

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