NEW DELHI: The Lok Sabha has passed the Oilfields (Regulation and Development) Amendment Bill 2024. This bill aims to strengthen Indiaโs energy sector and ensure policy stability.
Union Petroleum Minister Hardeep Singh Puri described the day as โhistoric.โ He said the bill will improve energy security and promote self-sufficiency under Prime Minister Narendra Modiโs leadership.
The Bill amends the 1948 Act that regulates natural gas and petroleum exploration. It introduces new definitions for mineral oils and petroleum leases. It also gives the central government rule-making powers and decriminalizes certain offences.
The Amendment Bill replaces the term โmining leaseโ with โpetroleum lease.โ This lease covers activities such as exploration, production, and disposal of mineral oils. Existing mining leases will remain valid.
The Act earlier punished violations with imprisonment, a fine of Rs 1,000, or both. The Amendment Bill replaces this with a penalty of Rs 25 lakh.
Puri also mentioned that India is the only country where petrol and diesel prices have reduced in the last three years.
The Bill is expected to attract investments, improve exploration, and strengthen energy security. The Oilfields (Regulation and Development) Amendment Bill 2024 marks a key step in ensuring Indiaโs energy independence.
โHistoric day in Indiaโs quest towards energy security and energy self-sufficiency,โ Puri wrote on social media platform X. He added that the amendments will boost Indiaโs energy sector, ensure policy stability, and extend lease periods.
Puri said global energy trends and the changing hydrocarbon landscape made these amendments necessary. โWe need to step up our exploration and production activities,โ he stated. The Bill aims to align Indiaโs framework with global practices and promote Ease of Doing Business.
He highlighted that earlier, one million sq km of Indiaโs sedimentary basin was a โNo Goโ area. โOur import dependence was rising,โ he noted. The government has now opened this area to encourage domestic crude production. Puri said 76% of exploration work is now happening in these previously restricted areas.
