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Lok Sabha passes Oilfield (Regulatory and Development) Amendment Bill
Mar-13-2025

The Lok Sabha cleared the Oilfields (Regulation and Development) Amendment Bill, 2024, that seeks to amend the existing law governing exploration and production of oil and gas as well as delink petroleum operations from mining operations to boost investment in the sector. The bill was passed by the Rajya Sabha on December 3, 2024.

Petroleum and Natural Gas Minister Hardeep Singh Puri said India is the only country in the world where in the reference period of last three years, the prices of petrol and diesel have actually come down. He said prices in neighbourhood countries are 15 to 25 per cent higher than in India. Equally, prices in Western Europe and US are much higher than in India. While moving the bill for consideration and passage in the Lok Sabha, Puri said it does not alter the existing level-playing field for both public and private sectors.

The minister said the oil bill aims to resolve one of the biggest grievances of global oil companies interested in investing in India by providing stability in operation, both in terms of tenure of the lease and the condition. The bill also does not alter the rights of the states, which will continue to give petroleum leases and receive royalties as before. The bill also does not alter the existing level-playing field and offers no preference to either the private or the public sector. Among others, the bill aims to decriminalise some of the provisions of the original Oilfields (Regulation and Development) Act, 1948, by introducing penalties, adjudication by an adjudicating authority and appeal as against the order of adjudicating authority.

Besides, he said the bill seeks to introduce 'petroleum lease' and expands the definition of mineral oils to include crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil and gas hydrate, with a view to raising domestic output and cutting reliance on imports. He stressed that the government is taking a holistic approach, and that the overall strategy is to increase domestic exploration and production as also to increase clean energy. Elaborating further, he said the long-term strategy for energy security revolves around the trilemma of availability, affordability and sustainability.


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