Some countries don’t want India to develop its oil and gas sector: Vedanta chairman Anil Agarwal

Vedanta Chairman Anil Agarwal on Friday said that some countries, including those in West Asia, don’t want India to develop its oil and gas sector. “They don’t want us to become self-sufficient. Otherwise, what will they do with their oil and gas,” Agarwal said at the India Today Conclave 2026.

Responding to a question by Business Today Group Editor Siddharth Zarabi on whether Vedanta would invest if the government plans to divest its stake in ONGC, Agarwal said he will explore all opportunities.

While India has become self-reliant in food production, Vedanta’s Agarwal said the country never “farmed” (mined) below the surface. “Mining is like farming below the land. The government’s focus is more on farming than on mining,” he said.

On over-regulation in mining, Agarwal said there is a need to change how things work if India wants to become self-reliant in mining. “Businessmen don’t get confidence because they keep getting notices that take up a lot of their time,” said Agarwal. “Businessmen should be given the benefit of doubt or self-certification.”

Indians always had an appetite for risk-taking, but that seems to be on the wane, Agarwal said. “Ten-twenty years ago, entrepreneurs were willing to take risk. If they had Rs 1 lakh, they would take a risk of Rs 2 lakh. Now there is a tendency to keep money in reserve for security,” said Agarwal.

India’s geology is amongst the best, but it takes almost five years to start a mine after it gets auctioned, said Agarwal.

State-run and private companies can increase production sectors such as oil and gas, gold, copper, said Agarwal. “We acquired a majority stake in Bharat Aluminium, Hindustan Zinc, Sesa Goa, Cairn. All these companies are capable of raising production 10-20X,” he said, adding that not even 5% of these mines in India have been explored. There are still firms that the government can privatise, said Agarwal.

India can reduce its imports and add employment through manufacturing and mining, believes Agarwal. “Entrepreneurs should take a little risk. We have sufficient gold, copper, bauxite, hydrocarbon, and uranium,” he said, adding that businesses should not have to fear the government.

As the West Asia war and the closure of Strait of Hormuz hit India’s energy supply, Agarwal said there is a need for a new policy to revamp the country’s oil and gas sector. “There is no alternative. Either we remain poor by buying oil from West Asia for hundreds of years or produce our own,” he said.

“Any entrepreneur can install a drilling machine in Rs 5 crore today. India has the potential to become Aatmanirbhar in oil and gas,” he added. “There is no better place to invest than in India. The government must work with businessmen on ease of doing business.”

While India is dependent on external energy sources for the short and medium term, Agarwal said, “We have asked our people to increase production in Krishna-Godavari (KG) basin.”

He also suggested opening up the coal sector in a big way. “We import Rs 20 billion worth of coal. We are providing jobs in foreign countries but not exploring coal here in India.”