Hydrocarbon Exploration and Licensing Policy (HELP)

Why in News? The proposed hydrocarbon exploration project in the waters of Kanniyakumari, specifically targeting the Wadge Bank, has sparked significant opposition from local fishing communities, environmentalists, and political representatives due to its potential to devastate livelihoods and the ecologically sensitive marine ecosystem.

The project, initiated by the Union Ministry of Petroleum and Natural Gas under the Hydrocarbon Exploration and Licensing Policy (HELP), has raised concerns about environmental pollution, biodiversity loss, and the displacement of fishers from a vital fishing ground

Relevance : UPSC Pre & Mains

Prelims : Wadge Bank/HELP

Mains :  GS 3– Environment & Ecology

Key Points of the News:

Hydrocarbon Exploration Proposal: The Union Ministry of Petroleum and Natural Gas issued a notice inviting bids in 2023 under the Hydrocarbon Exploration and Licensing Policy for oil and gas exploration in three blocks south of Cape Comorin, covering 27,154.80 sq km (9,514.63 sq km, 9,844.72 sq km, and 7,795.45 sq km). :

Wadge Bank Significance: The exploration area includes the Wadge Bank, a 10,000 sq km marine region south of Cape Comorin, known for its rich fishery resources, over 200 rare fish species, and minimal currents, making it a critical fishing ground for Tamil Nadu and Kerala.

Livelihood Concerns: Fishermen associations from Kanniyakumari, Tirunelveli, Thoothukudi, and Ramanathapuram in Tamil Nadu, and parts of Kerala, fear that the project, located 35 nautical miles from shore, will disrupt fishing activities, forcing small-scale fishers to travel longer distances and threatening their livelihoods.

Environmental Risks: A study by the University of Alaska Fairbanks’ Department of Environmental Sciences highlights that hydrocarbon exploration could release pollutants into air and water, potentially harming the Wadge Bank’s biodiversity and its role as a Natural disaster barrier, as noted by Justin Antony of the International Fishermen Development Trust.

Community Opposition: C. Berlin of Neithal Makkal Iyakkam criticized the lack of consultation with local fishers, urging the project’s revocation. Fishermen convened a meeting in Nagercoil on May 11, 2025, to plan protests and submit a memorandum to the Ministry of Petroleum and Natural Gas.

Political Response: S. Rajeshkumar, MLA from Killiyoor, stated that the Tamil Nadu government has not issued a no-objection certificate and a plea against the project was raised in the Assembly, citing the absence of prior intimation or public hearings by the Central government.

Ecological and Cultural Value: The Wadge Bank is described as an ecologically valuable littoral zone, supporting coastal communities’ traditions and food security, with activists warning that exploration could turn the sea into a “barren zone” and exacerbate climate change impacts.

About Hydrocarbon Exploration and Licensing Policy (HELP):

• The Hydrocarbon Exploration and Licensing Policy (HELP), introduced by the Government of India in March 2016 and approved on March 10, 2016, is a comprehensive framework designed to enhance domestic oil and gas exploration and production.
• It replaced the New Exploration Licensing Policy (NELP), which operated from 1999 to 2015, to address its limitations, streamline processes, and attract investment in India’s hydrocarbon sector.
• HELP aims to boost energy security, reduce import dependency, and promote sustainable development by encouraging exploration in both onshore and offshore areas, including deep-water and frontier basins.

Objectives: HELP seeks to accelerate exploration activities, ensure a transparent and investor-friendly regime, and maximize hydrocarbon recovery.

• It supports the government’s vision of reducing crude oil imports by 10% by 2022 (later extended) and aligns with India’s energy transition goals by balancing fossil fuel development with environmental considerations.
• The policy emphasizes ease of doing business, data availability, and fiscal incentives to attract global and domestic players.

About Wadge Bank :

• It is a submarine ridge located in the Indian Ocean, south of Cape Comorin (Kanniyakumari), Tamil Nadu, spanning approximately 10,000 square kilometers. Situated about 35 nautical miles from the shore, it lies in the waters between the southern tip of India and Sri Lanka, within India’s Exclusive Economic Zone (EEZ).
• The bank is a shallow, nutrient-rich marine area, with depths ranging from 20 to 200 meters, making it one of the most productive fishing grounds in the region due to its abundant fishery resources and minimal ocean currents.

Biodiversity and Marine Ecosystem:

• Wadge Bank is renowned for its rich biodiversity, hosting over 200 rare fish species, including commercially valuable ones like tuna, mackerel, sardines, and shrimp.
• It also supports coral reefs, seagrass beds, and other marine habitats critical for ecological balance.
• The area’s unique topography, acting as an upwelling zone, fosters high marine productivity, attracting a variety of pelagic and demersal fish.
• Environmentalists highlight its role as a natural barrier, protecting coastal areas of Tamil Nadu and Kerala from tsunamis and other oceanic disasters, as noted by Justin Antony of the International Fishermen Development Trust in 2025.