Agitations in the region began soon after the approval. Drought hit farmers, college students and even scientists protested this project claiming that it could lead to an ecological disaster in the area. Geologists, experts and local residents claimed various reasons for this resistance. There is a fear of displacement of farmers, occupation of cultivable land, impact on agriculture, saline water intrusion, contamination of the ground water system and soil. Some believe this project is tapping into methane and shale reservoirs, which have larger impacts. 

While this is being denied, the government official website states shale activity in the same region. This also comes after the new Hydrocarbon Exploration Licensing Policy (HELP) policy was passed. This will provide for a uniform licensing system to cover all hydrocarbons such as oil, gas, coal bed methane etc. under a single licensing framework.

Pudukottai is usually a dry region. But the villagers have toiled for around 30 years, used borewells extensively, and changed the landscape. Neduvasal’s fertile soil now grows paddy, groundnut, pepper, cocoa and cucumber. And so the villagers fear losing their land, crops and livelihood to the project. In response, a press release from the Government dismissed these concerns and claimed that the project will not have any environmental impact. 

A statutory environmental public hearing is required to be held under the Environmental Impact Assessment Notification (EIA) of 2006, which was not held before this project.  Nityanand Jayaraman, an environmentalist, filed a Right to Information petition regarding the EIA of this project. While the response showed that the company had not prepared an environment impact assessment report, it also refused to share copies of the environmental clearances secured for the project, stating they contained “commercial confidence information”. 

Union minister Pon Radhakrishnan and state minister C Vijayabaskar held talks with the villagers on March 9, assuring them that a meeting would be arranged with Petroleum Minister Dharmendra Pradhan where concerns of the villagers would be addressed. A few representatives of the villages were called to Delhi to Mr. Pradhan. He assured them that the project would not be carried out against their will. Subsequently the first phase of 22-day strident protest was called off. But in April the Union government signed an agreement with Gem Laboratories (a company based out of Davangere in Karnataka, started by late BJP Member of Parliament, G Mallikarjunappa) for the exploration in the Neduvasal DSF. The agitation stirred back. 

Though the contract is with Gem Laboratories, the villagers have mainly been targeting ONGC as it remains the largest driller in the Cauvery basin, while others are small players. ONGC had started work in Neduvasal in 2007. Oil wells were drilled but shut down later due to it not being viable economically. These wells have now been handed to Gem laboratories for the current project. Though the project has come to a temporary halt at the moment, there has been no indication of a permanent call-off. Villagers have been orally protesting and distributing pamphlets. A case has been filed with the National Green Tribunal (NGT). 

Overarching DSF policy: The cumulative peak production from the 31 fields is expected to be around 15,000 barrels per day (bpd) of oil and two million metric standard cubic metres per day (mmscmd) of gas over the economic life of the asset. The estimated total revenue would be approximately Rs 46,400 crore, of which royalty collection and Government's revenue share is expected to be around Rs 5,000 crore and Rs 9,300 crore, respectively. More than 700 wells have been drilled for extraction of oil and gas in the Tamil Nadu.

HELP policy: This new Hydrocarbon Exploration and Licensing Policy (HELP) replaced the previous licensing format (NELP) which was already in place for 18 years. The New Exploration Licensing policy(NELP) had issued separate licenses to different types of hydrocarbons, whereas HELP covered all hydrocarbons such as oil, gas, coal bed methane, shale etc. An Open Acreage Licensing Policy will be implemented whereby a bidder may apply to the Government seeking exploration of any block not already covered by exploration. The contractor will have freedom for pricing and marketing of gas produced in the domestic market on arms length basis.