Lok Sabha clears Bill to amend law governing development of oilfields

The Bill was introduced by Petroleum Minister Hardeep Singh Puri who said the original law was enacted in 1948 and covered mining, quarrying and petroleum leases. Then, a separate law was enacted in 1957 for mines and minerals, while the parent act was rechristened the Oilfields (Regulation and Development) Act, 1948, but the terminologies remained the same.

“We are seeking to change that today. We are also introducing a single permit system for all types of mineral oil exploration…The oil Bill also aims to resolve one of the biggest grievances of global oil companies interested in investing in India by providing stability in operation, both in terms of tenure of the lease and condition,” he said.

Anticipating the issues that could come up during the discussion, he added that “the Bill does not alter the rights of states”, as states would continue to grant petroleum leases for online areas and receive royalties.

During the discussion, Congress MP Manish Tewari said the Bill had “minor” changes, but no plan for reducing energy imports.

TMC’s Pratima Mondal the Bill “opens the door for private companies to dominate oilfields, allowing big corporations to extract mineral oils with very little government control.”