Parliament on Wednesday passed a bill, which wants to amend the existing law to control petroleum operations from mining operations to promote investment in the area along with the exploration and production of oil and gas. The Lok Sabha on Wednesday approved the Oilfields (Regulation and Development) Amendment Bill, 2024. The bill was passed by the Rajya Sabha on 3 December 2024.
Responding to the discussion on the bill, Petroleum and Natural Gas Minister Hardeep Singh Puri said that India is the only country in the world where in the reference period of the last three years, the prices of petrol and diesel have actually reduced.
Puri said, “We have reduced the prices of petrol and diesel as the Prime Minister has reduced the Central Excise (Duty) on two occasions,” Puri said in the opposition that Congress -ruled states have increased the VAT (price -addicted tax) on petrol and diesel.
Prices in neighboring countries are 15 to 25% more than India. Equally, prices in western Europe and America are much higher than in India, he said.
Transferring the bill to consider and pass into the Lok Sabha, Puri said that it does not change the field playing at the current level for both public and private sectors.
“The objective of the Oil Bill is to solve one of the greatest complaints of global oil companies, which also does not change the rights of both states, which will continue to receive petroleum leases and royalty as before, by providing stability in operation in India, tenure and status.”
The minister said, “The bill also does not change the current level-playing area and does not give any preference to the private or public sector.”
Among others, the bill aims to reduce some provisions of the original Oilfields (Regulation and Development) Act, 1948, which ‘punishment, an assistant authority appeals as the addition and appeal, as is against the order of the Assistant Authority.
In addition, it attempts to introduce ‘petroleum lease’ and expands the definition of mineral oils to include crude oil, natural gas, petroleum, condensate, coal bed methane, oil, oil shell, shell gas, shell oil, tight gas, tight oil and gas hydrates, with a view to increasing the dependence on domestic production and imports.
In his reply, Puri insisted that the government is taking a holistic approach, and that the overall strategy is also to increase clean energy to increase domestic investigation and production.
Moving forward, Puri said that long-term strategy for energy security revolves around the trial of availability, strength and stability.
“So far, we have successfully navigated the three,” he said.
Currently, India is importing oil from 39 countries and in fact, is also buying from 40th country.
The minister said, “Wherever we are, we will buy … we do not distinguish between our sources of supply.”
Congress leader Manish Tiwari started the discussion and said that the draft law has ‘lack of vision and roadmap’.
Referring to oil imports, Tiwari claimed that India was ‘not ready for the future’.
“India requires a roadmap to make energy enough, which is unfortunately missing. What is the government’s plan to encourage independent oil explorers? Is there something in the bill that encourages them,” Tiwari asked.
As far as the bill is concerned, he said that it makes minor changes here and there but one vision is missing. “You are not a government that was sworn in yesterday, but 11 years ago.”
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