Oilfields (Regulation and Development) Amendment Bill, 2024
Kartavya Desk Staff
Syllabus: Economics
Source: IE
Context: The Oilfields (Regulation and Development) Amendment Bill, 2024 was passed by the Rajya Sabha to encourage domestic production of petroleum and mineral oils and promote private sector participation.
Key Features in Bill:
• Expanded Definition of Mineral Oils: Includes all hydrocarbons (natural gas, crude oil, shale gas, and coal-bed methane). Excludes coal, lignite, and helium.
• Includes all hydrocarbons (natural gas, crude oil, shale gas, and coal-bed methane).
• Excludes coal, lignite, and helium.
• Introduction of Petroleum Lease: Replaces “mining lease” with “petroleum lease” covering activities like exploration, production, and disposal of mineral oils. Existing leases remain valid.
• Replaces “mining lease” with “petroleum lease” covering activities like exploration, production, and disposal of mineral oils.
• Existing leases remain valid.
• Decriminalisation of Offences: Replaces imprisonment with fines: ₹25 lakh for violations and ₹10 lakh per day for continued violations.
• Replaces imprisonment with fines: ₹25 lakh for violations and ₹10 lakh per day for continued violations.
• Rule-Making Powers: Central government can set rules on environmental obligations, emission reductions, and dispute resolution mechanisms.
• Central government can set rules on environmental obligations, emission reductions, and dispute resolution mechanisms.
• Adjudication Mechanism: Penalties adjudicated by Joint Secretary-level officers; appeals directed to the Appellate Tribunal under the Petroleum and Natural Gas Board Act, 2006.
• Penalties adjudicated by Joint Secretary-level officers; appeals directed to the Appellate Tribunal under the Petroleum and Natural Gas Board Act, 2006.
Significance:
• Boosts Domestic Production: Encourages exploration and production of petroleum and natural gas. Reduces import dependency on crude oil.
• Reduces import dependency on crude oil.
• Private Sector Participation: Attracts private investment with clear lease regulations and reduced penalties.
• Environmental Responsibility: Introduces rules for emission reductions and sustainable practices.
• Regulatory Simplification: Decriminalisation enhances ease of doing business.
• Modernisation: Aligns with global energy trends by addressing unconventional hydrocarbons like shale gas.
Challenges
• State Rights: Potential disputes over states’ taxation rights due to changes in lease terminologies.
• Environmental Concerns: Handing over resources to private entities might lead to over-extraction or ecological harm.
• Implementation Issues: Effective enforcement of environmental and emission norms may pose challenges.
• Regulatory Overlap: Coordination between central and state authorities for royalty collection and lease approvals.
Conclusion:
The Oilfields Amendment Bill, 2024, modernises India’s regulatory framework for petroleum exploration, boosting domestic production and private investment. However, addressing environmental and state taxation concerns is crucial to ensuring balanced growth and sustainability.
Insta Links:
• Petroleum-and-natural-gas
Consider the following statements: (UPSC-2019)
• Coal sector was nationalised by the Government of India under Indira Gandhi. Now, coal blocks are allocated on lottery basis. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
• Coal sector was nationalised by the Government of India under Indira Gandhi.
• Now, coal blocks are allocated on lottery basis.
• Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?
b. 2 and 3 only
d. 1, 2 and 3
Answer: a)