The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI/MUMBAI, MARCH 18, 2025
Vedanta Group Chairman Anil Agarwal has outlined an ambitious vision to transform Assam into a major hydrocarbon hub, comparing the state’s untapped reserves to Houston’s globally recognized oil and gas industry. Speaking at Advantage Assam 2.0, the state’s premier global investment conclave in Guwahati, he announced a ₹50,000 crore investment through Vedanta subsidiary Cairn Oil & Gas, with the goal of producing 100,000 barrels of oil per day within the next two years. His vision extends beyond large-scale exploration, advocating for the creation of a supportive ecosystem for micro-entrepreneurs in the oil and gas sector, similar to the flourishing independent tea-growing model in Assam.
The event was graced by Prime Minister Narendra Modi, Assam Chief Minister Dr. Himanta Biswa Sarma, and other key dignitaries, highlighting the importance of private sector participation in Assam’s economic transformation. Addressing the audience, Agarwal emphasized that Assam’s future lies in relentless exploration, stating, “The mantra for Assam’s future is simple: Exploration, exploration, exploration. Assam will lead the way.”
Agarwal highlighted Assam’s rich natural wealth, from its lush tea gardens and dense forests to its vast underground hydrocarbon reserves. He emphasized that for over 200 years, Assam has been synonymous with India’s tea cultivation, and in recent years, small tea growers have flourished, thanks to reduced regulatory hurdles that have enabled local entrepreneurs to thrive. Drawing a parallel to the oil and gas sector, he proposed that a similar regulatory and financial support system for small-scale oil and gas exploration could revolutionize Assam’s energy landscape, unlocking vast reserves while generating employment and economic prosperity.
He pointed to successful models abroad, stating that in the United States, small-scale drilling is facilitated by seamless online approvals, allowing independent entrepreneurs to extract crude and send it to refineries with minimal bureaucratic delays. Assam, he suggested, could adopt this approach to significantly boost exploration and production, making it a model for the rest of India.
Expressing confidence in Assam’s hydrocarbon reserves, Agarwal said, “When I see Assam, I see another Houston.” He emphasized that Assam has the potential to emerge as one of the world’s most significant hydrocarbon-producing regions, akin to the energy-rich city of Houston in the United States. Cairn Oil & Gas, which currently holds 7,650 sq. km of acreage in the Arakan Basin, has an extensive portfolio of 15 exploration blocks, including 12 under the Open Acreage Licensing Policy (OALP) and three Discovered Small Fields (DSF).
Currently, Cairn is actively producing oil from three locations in Assam and has achieved a significant milestone by extracting natural gas for the first time in the region. This gas is now being supplied to tea gardens, providing them with a cleaner and more efficient alternative to coal, thereby reducing costs and increasing productivity.
Vedanta’s commitment to invest ₹50,000 crore in Assam’s oil and gas sector is a game-changer for the region. This investment will establish world-class exploration and production facilities, leading to the creation of over one lakh direct and indirect jobs. Agarwal noted that Assam is poised to become the world’s seventh-largest mega basin, making it a pivotal player in India’s energy security and economic growth.
He also highlighted the dominance of government entities in Assam’s petroleum sector, with 90% of the market controlled by state-run companies, while private sector participation remains at just 10%. Vedanta is proud to be part of this pioneering 10%, he said, and remains committed to expanding private sector involvement in downstream industries such as refineries, lubricant production, and gas-based industries, which will further enhance Assam’s industrial capabilities.
Vedanta’s commitment to Assam extends beyond oil and gas exploration. Cairn Oil & Gas has been producing from the Hazarigaon field since 2023, making it the first DSF block in Northeast India to commence production. The gas extracted from this field is already playing a crucial role in boosting tea production, allowing estates to switch from expensive coal-based energy sources to cleaner, more cost-effective natural gas. Additionally, this locally produced gas is now fueling 100 CNG buses in Guwahati, contributing to Assam’s clean energy transition and sustainable urban mobility initiatives.
Beyond energy, Vedanta is deeply committed to corporate social responsibility (CSR) initiatives aimed at fostering education, skill development, and social empowerment in Assam. As part of this initiative, the company plans to expand the number of Nand Ghars (modernized anganwadis) across the state, set up new handloom skill centers to support Assam’s traditional weaving industry, introduce digital classrooms for women and children to bridge the education gap, and promote sports to nurture young talent in the region. These initiatives are designed to create a brighter, more inclusive future for Assam’s youth, ensuring that economic growth translates into holistic social development.
With the Indian government’s pro-business policies and Assam’s strong leadership under Chief Minister Himanta Biswa Sarma, the state is witnessing unprecedented industrial momentum. Anil Agarwal reaffirmed Vedanta’s unwavering commitment to supporting Assam’s transformation into a leading industrial and energy hub. The MoU signed at Advantage Assam 2.0 marks a crucial step in this journey, solidifying Assam’s role in India’s energy landscape and contributing significantly to India’s vision of self-reliance in oil and gas production.
Vedanta’s strategic investment will not only enhance Assam’s standing as an energy powerhouse but also drive economic growth, generate employment, and champion clean energy adoption, paving the way for a new era of sustainable industrial development in the region.
