The Rajya Sabha has passed the Oilfields (Regulation and Development) Amendment Bill, 2024, which aims to amend existing laws governing oil and gas exploration and production, and delink petroleum operations from mining operations to boost investment in the sector.
The bill was introduced in August this year and was passed by a voice vote. Oil Minister Hardeep Singh Puri stated that the oil and gas sector involves high investment and a long gestation period, and that the legislation should provide a win-win confidence for both Indian operators and foreign investors.
The bill proposes to introduce ‘petroleum lease’ and expand 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 the aim of raising domestic output and cutting reliance on imports. Opposition members demanded that the bill be sent to a standing committee for further scrutiny, while opposition member N R Elango (DMK) demanded that the bill must be referred to a select committee.
Puri argued that as India grows economically and aims to become a developed nation by 2047, there is a need to enhance domestic production of oil and gas to meet rising demand and secure its energy supply. He lamented that between 2006 and 2016, “virtually nothing was done on the exploration” front, which is felt currently with domestic production falling.
The provisions in the bill intend to substantially improve the ease of doing business and make India an attractive destination for enhanced production of oil and gas to monetize India’s vast reserves. The bill aims to ensure that investors have more confidence to come here, unlike the dull period between 2006 and 2014.
Aam Aadmi Party member Sanjay Singh said that BJP leaders promised to lower diesel prices to ₹ 40 per litre and petrol to ₹ 50 but it was never fulfilled. He said that in 2014 crude oil prices were USD 135 per barrel but neither diesel nor petrol prices reached ₹ 100 per litre. When crude oil price dipped to USD 19 per barrel even then, petrol and diesel were sold at high rates.
The bill proposes to bring in new investors and encourage big corporate houses in the sector, where public sector unit ONGC is making a profit of ₹ 40,000 crore. Treasury bench members interrupted Singh’s speech when he praised former Delhi Chief Minister Arvind Kejriwal for giving free electricity, free education, free treatment, and cheap petrol and diesel compared to a BJP-ruled state and a union territory.
AIADMK member M Thambidurai expressed concern over the impact of hydrocarbon exploration on farmers in Tamil Nadu. NCP member Fauzia Khan and CPI Member PP Suneer expressed concerns over the decriminalization of offences under the new bill. The bill has a provision to impose the highest penalty of ₹ 25 lakh and removes clauses related to imprisonment.
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Source: NDTV
