The Bill amends the Oilfields (Regulation and Development) Act, 1948, delinking petroleum from mining operations, ensuring lease stability, and decriminalizing certain offenses. While it aims to boost FDI and regulatory clarity, critics argue it lacks a long-term vision for energy security and domestic exploration incentives.
Relevance : GS 2(Governance) ,GS 3(Energy Security)
Highlights of the Bill
- Amendment to 1948 Act: The Bill seeks to modify the existing Oilfields (Regulation and Development) Act, 1948, to attract investments.
- Delinking Petroleum & Mining Operations: Separates petroleum operations from mining activities to streamline regulations.
- Investment Boost: Aims to address concerns of global oil firms by ensuring stability in lease tenure and operational conditions.
- State Rights Unaffected: States will continue granting petroleum leases and receiving royalties.
- Level Playing Field: No preference given to private or public sector companies.
- Decriminalization of Offenses: Certain provisions replaced with penalties and adjudication mechanisms.
Government’s Justification
- Fuel Price Stability: Union Minister Hardeep Singh Puri highlighted that petrol and diesel prices have reduced in India due to central excise duty cuts.
- Attracting FDI in Oil & Gas: The Bill removes legal uncertainties, offering a more predictable regulatory environment.
Criticism & Opposition Views
- Lack of Long-term Vision: Congress MP Manish Tewari argued that the Bill does not provide a roadmap for making India energy-sufficient.
- No Incentives for Independent Oil Explorers: The Bill lacks provisions to encourage domestic oil exploration.
- Dependence on Oil Imports: Critics argue that the Bill does not address India’s long-term energy security concerns.
Potential Implications
- Enhanced Foreign Investments: A more stable policy framework may attract global energy firms.
- Regulatory Clarity: Simplified rules could lead to faster project approvals and reduced legal disputes.
- Energy Security Concerns Persist: The Bill does not outline strategies for reducing dependence on oil imports.
