Landmark Bill Enhances India's Energy Sector

The Oilfields Amendment Bill, 2024, passed in the Rajya Sabha, redefines mineral oils to incorporate petroleum and natural gas. It introduces policy stability, international arbitration, and extended lease periods in India's energy sector, offering new opportunities and facilitating ease of doing business.

In a significant legislative move, Union Petroleum and Natural Gas Minister Hardeep Singh Puri lauded the Rajya Sabha's passage of the Oilfields (Regulation and Development) Amendment Bill, 2024. Describing it as a 'historic step into the future,' Puri emphasized the bill's potential to bolster India's energy sector under Prime Minister Narendra Modi's leadership, ensuring policy stability and facilitating international arbitration.

The bill, introduced by Minister Puri, seeks to redefine mineral oils to include petroleum and natural gas, regulating their exploration and extraction. It will now encompass naturally occurring hydrocarbons such as coal bed methane and shale gas/oil, excluding coal, lignite, and helium. This amendment aims to provide clarity and encourage investment by delinking outdated mining terminology and introducing new terms like 'petroleum lease.'

Puri highlighted the bill's provisions for the government to establish rules promoting environmental protection and green energy projects. Additionally, the bill aims to aid small operators and newcomers by enabling shared use of production and processing facilities. Stiff penalties for violations underscore the government's commitment to maintaining compliance and ensuring sustainable energy development.

(With inputs from agencies.)