Bill to ensure stability and encourage investments
Petroleum and Natural Gas Minister Hardeep Singh Puri, while presenting the bill in the Lok Sabha, emphasised that the amendments do not alter the level-playing field for public and private sector entities.
He stated that the proposed changes address concerns raised by global oil companies about the stability of operations in India, ensuring a consistent tenure of leases and operational conditions.
“The bill also does not alter the rights of the states, which will continue to give petroleum leases and receive royalties as before,” Puri clarified.
The legislation introduces “petroleum leases,” expands the definition of mineral oils, and includes various resources such as crude oil, natural gas, petroleum, coal bed methane, oil shale, shale gas, tight gas, tight oil, and gas hydrates. This expansion is aimed at increasing domestic production and reducing dependence on oil imports, he added.
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Decriminalisation and adjudication of offences
Another key aspect of the bill is the decriminalisation of certain offences under the Oilfields (Regularisation and Development) Act, 1948. Instead of criminal penalties, the bill proposes monetary fines, adjudication by an authority, and an appellate process for disputes.
Govt’s energy strategy: Availability, Affordability, and Sustainability
During the debate, Puri stressed that the government is adopting a comprehensive approach to strengthen the energy sector.
“The long-term strategy for energy security revolves around the trilemma of availability, affordability, and sustainability. So far, we have navigated all three very successfully,” Puri said.
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Highlighting fuel prices, he noted that India is the only country where petrol and diesel prices have declined in the past three years. “We have brought down the prices of petrol and diesel because the prime minister reduced the central excise duty on two occasions,” Puri remarked.
He also pointed out that fuel prices in neighbouring countries are 15–25% higher than in India and significantly higher in Western Europe and the US.
Opposition criticises the Oilfields Bill
Congress MP Manish Tewari, who initiated the discussion, criticised the bill for lacking a clear roadmap for energy self-sufficiency. “What is required is a roadmap to make India energy sufficient, which unfortunately is completely missing,” Tewari said.
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He questioned whether the bill offered any specific incentives for independent oil explorers and argued that only minor adjustments had been made without an overarching vision.
On oil imports, Puri reaffirmed India’s stance on sourcing crude oil from multiple countries. “Currently, India is importing oil from 39 countries and, in fact, also buying from a 40th country. We will buy from wherever we have to… we do not distinguish between the sources of our supply,” he asserted.
With these amendments, the government aims to boost investments in the sector while ensuring stability and long-term security in oil and gas production.
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