New Delhi, December 3 (IANS). The amendments made in the Oilfields Act 1948 were approved by the Rajya Sabha on Tuesday. This will increase ease of doing business in the country and will also help in the development of India’s rapidly growing energy sector.
“The proposed amendments will further strengthen India’s energy sector under the leadership of Prime Minister Narendra Modi,” Petroleum and Natural Gas Minister Hardeep Singh Puri said, calling it “a historic step towards the future.”
The Union Minister elaborated that petroleum (crude oil/natural gas) is found in the pores of underground rocks and is extracted by drilling, hence separation of the words ‘mine’ or ‘exploration’ mentioned in the present Act will remove the ambiguity. And there will be ease in doing business in this area.
Further explained that the term ‘mineral oil’ is traditionally understood to mean natural gas and petroleum. As unconventional hydrocarbon resources have been discovered and developed, there was a need to update the definition of the term to today’s standards.
The definition of mining lease has been amended to make it clear that leases granted before the coming into force of the Oilfields Amendment Act will be called mining leases. Thereafter the said terminology shall be discontinued and the term petroleum lease as defined in clause (f) shall be used.
The Act provides for incentives to investors for development of fields, including planning of reservoir management practices. This provision empowers the government to make rules to protect the environment and promote the development of green energy projects and to adopt energy transition measures, so that the government and companies can achieve their climate vision.
The minister said the proposed amendments also provide for a proper system for imposing fines as well as setting up adjudication authorities, mechanisms and appeals to deal with appeals arising therefrom.
–IANS
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