The recent passage of the Oilfields (Regulation and Development) Amendment Bill, 2024, marks a pivotal moment for India's oil and gas sector, with the potential to significantly enhance exploration and production activities.

Approved by the Lok Sabha on March 12, 2025, this bill aims to modernize the regulatory framework established by the Oilfields Act of 1948. Its primary objective is to attract private investment and encourage domestic production of hydrocarbons, thereby reducing India's reliance on imported oil.

Key provisions of the bill include the introduction of a "petroleum lease" system, which separates oil and gas exploration from traditional mining operations. This change is expected to streamline environmental and land clearance processes, which have historically caused project delays.

The bill also broadens the definition of mineral oils to encompass various hydrocarbons such as crude oil, natural gas, coal bed methane, and shale gas, while explicitly excluding coal and lignite, which fall under different regulations.

Furthermore, the bill decriminalizes certain violations by replacing imprisonment with substantial financial penalties. For instance, fines for non-compliance can reach up to ₹25 lakh, with additional daily fines for continued violations. This shift from criminal prosecution to financial deterrents aims to create a more business-friendly environment.

Minister of Petroleum and Natural Gas Hardeep Singh Puri emphasized that these reforms are designed to foster a stable and predictable legal framework that encourages investment in high-risk sectors like oil and gas.

By enhancing operational clarity and reducing bureaucratic hurdles, the bill is poised to facilitate greater participation from both domestic and international players in India's energy landscape. Overall, this legislative change is seen as a strategic move towards achieving energy security and self-sufficiency for India in line with its long-term development goals.

ANI