9OCTOBER 2025ONGC TO INVEST 8,110 CR IN ANDHRA PRADESH ONSHORE OIL & GASVEDANTA UNVEILS 13,226 CR TO BOOST ALUMINIUM CAPACITY BY FY28As part of a significant initiative to solidify its position in the metals sector, Vedanta Ltd, led by billionaire Anil Agarwal, is in discussions to invest 13,226 crore to increase its aluminium production capacity from 2.4 million tonnes per annum (MTPA) to 3.1 MTPA by FY28, the sources indicated.It is believed that the move will bolster local hydrocarbon production, and it will also help boost the energy sector of the state. The project has recently been recommended Environmental Clearance (EC) by a committee of the Ministry of Environment, Forest and Climate Change (MoEFCC) at a meeting held last month.The cost of the project is estimated to be: capital outlay of 172 crore to the Environment Management Plan (EMP), and an annual recurring cost of the EMP of 91.16 crore. Also, the commitment made at the Public Hearing has been proposed at 11 crore as per the meeting of the Expert Appraisal Committee.In awarding the EC recommendation, the committee noted that ONGC should be a strict adherent to all the environmental protection measures and safeguards that were mentioned in the documents submitted. The recommendations of the Environmental Impact Assessment (EIA) and EMP with regard to environmental management and mitigation of risk will be followed to the letter.Notably, the committee pointed out that no wells will be located within 10km of the eco-sensitive Coringa Wildlife Sanctuary, as per the issued NOC in May. Moreover, no pipelines and other facilities will be established in forests and other areas that are safeguarded without the consent of the competent authority. The increase is in alignment with Vedanta's strategy to elevate aluminium to the focal point of its growth strategy and to protect its market leadership in a domestic market where its share is already over 50 percent.The company is expected to increase its aluminium production to 2.75 MTPA by FY26 and to 3.10 MTPA by FY28. The sources also indicated that BALCO, a subsidiary of Vedanta, is expected to join the one million tonne capacity club.The integrated nature of Vedanta's operations - which include the Lanjigarh Refinery and captive coal mines - have provided the company the ability to take the aluminium production cost down by nearly 24 percent ($641 per tonne) over the last 11 quarters. This backward integration, which is unique in the world, provides resilience to geopolitical uncertainty, and promotes low-cost sustainable manufacturing.India's appetite for aluminium is expected to rise sharply supported by government initiatives including `Make In India', `Smart Cities', and 'Housing For All', as well as the country's strong GDP growth. As noted by several industry experts, aluminium is becoming the backbone of the energy transition, and Vedanta is positioned to support India's aspirations whilst remaining competitive on a global scale. Oil and Natural Gas Corporation Limited (ONGC) is embarking on a significant investment project of 8,110 crore to increase the production rate of onshore oil and gas through 172 wells of eight Production Mining License (PML) blocks in Andhra Pradesh.
< Page 8 | Page 10 >