Lok Sabha Passes Oilfield Amendment Bill

13 Mar 2025 CW Team

This landmark reform aligns with India’s long-term vision of energy availability, accessibility, affordability, and security, contributing to the Hon’ble Prime Minister’s vision of Viksit Bharat by 2047.

Transforming India’s Oil and Gas Sector Over the past decade, the Government has introduced groundbreaking reforms to boost exploration and production (E&P) activities. These include:

Transitioning from a production-sharing model to a revenue-sharing regime for contract awards. Simplifying regulatory processes and reducing bureaucratic hurdles. Opening previously restricted No-Go areas for new exploration. Deregulating crude oil and granting pricing and marketing freedom for natural gas. As a result of these reforms, 76% of India’s active exploration acreage today has been awarded since 2014, highlighting the Government’s commitment to accelerating domestic energy production.

A More Business-Friendly and Transparent Framework Introducing the historic amendment, Hon’ble Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri, emphasised that the previous regulatory system—focused on licensing, control, and royalty collection—needed a modernised approach to promote Ease of Doing Business.

Key highlights of the Bill include:

Simplification of permit processes: The Bill eliminates the outdated practice of treating mining and petroleum operations under the same regulatory umbrella. Single Permit System: The introduction of a unified petroleum lease will replace the current multi-license requirement, reducing red tape and making operations more efficient. Adoption of advanced energy technologies: The new framework will support next-generation technologies such as Carbon Capture, Utilisation and Storage (CCUS), green hydrogen production, and integrated energy projects. Resource sharing to aid small operators: To monetise smaller discoveries, the Bill allows infrastructure sharing between different operators, ensuring that isolated oilfields can be developed cost-effectively. Investor-friendly legal framework: By offering longer and more stable lease tenures, the Bill addresses one of the biggest concerns of global oil companies seeking to invest in India. Dispute Resolution and Compliance Strengthening To further enhance investor confidence, the Bill introduces efficient and cost-effective alternate dispute resolution mechanisms, ensuring timely and fair resolution of contractual disputes.

To enforce compliance, the penalties for infractions have been significantly increased:

Fines of Rs 2.5 million for violations. Additional fines of Rs1 million per day for continued non-compliance. Creation of a dedicated adjudication authority and appellate mechanism for penalties, ensuring quicker dispute settlements.

The Lok Sabha today passed the Oilfield (Regulatory and Development) Amendment Bill, 2024, marking a significant step towards modernising India's oil and gas sector. The Bill, which was earlier cleared by the Rajya Sabha on 3rd December 2024, aims to streamline regulations, enhance investor confidence, and increase domestic hydrocarbon production. This landmark reform aligns with India’s long-term vision of energy availability, accessibility, affordability, and security, contributing to the Hon’ble Prime Minister’s vision of Viksit Bharat by 2047. Transforming India’s Oil and Gas Sector Over the past decade, the Government has introduced groundbreaking reforms to boost exploration and production (E&P) activities. These include: Transitioning from a production-sharing model to a revenue-sharing regime for contract awards. Simplifying regulatory processes and reducing bureaucratic hurdles. Opening previously restricted No-Go areas for new exploration. Deregulating crude oil and granting pricing and marketing freedom for natural gas. As a result of these reforms, 76% of India’s active exploration acreage today has been awarded since 2014, highlighting the Government’s commitment to accelerating domestic energy production. A More Business-Friendly and Transparent Framework Introducing the historic amendment, Hon’ble Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri, emphasised that the previous regulatory system—focused on licensing, control, and royalty collection—needed a modernised approach to promote Ease of Doing Business. Key highlights of the Bill include: Simplification of permit processes: The Bill eliminates the outdated practice of treating mining and petroleum operations under the same regulatory umbrella. Single Permit System: The introduction of a unified petroleum lease will replace the current multi-license requirement, reducing red tape and making operations more efficient. Adoption of advanced energy technologies: The new framework will support next-generation technologies such as Carbon Capture, Utilisation and Storage (CCUS), green hydrogen production, and integrated energy projects. Resource sharing to aid small operators: To monetise smaller discoveries, the Bill allows infrastructure sharing between different operators, ensuring that isolated oilfields can be developed cost-effectively. Investor-friendly legal framework: By offering longer and more stable lease tenures, the Bill addresses one of the biggest concerns of global oil companies seeking to invest in India. Dispute Resolution and Compliance Strengthening To further enhance investor confidence, the Bill introduces efficient and cost-effective alternate dispute resolution mechanisms, ensuring timely and fair resolution of contractual disputes. To enforce compliance, the penalties for infractions have been significantly increased: Fines of Rs 2.5 million for violations. Additional fines of Rs1 million per day for continued non-compliance. Creation of a dedicated adjudication authority and appellate mechanism for penalties, ensuring quicker dispute settlements.

Infrastructure Transport

15 Oct 2025

BMC Gets CRZ Nod For Rs 40 Million Gorai Bridge Rebuild

The Brihanmumbai Municipal Corporation (BMC) has secured Coastal Regulation Zone (CRZ) clearance for the reconstruction of the Poisar River bridge in Gorai, located in Mumbai’s western suburbs. However, the proposed demolition of the existing 100-metre bridge has sparked opposition from local residents, who claim it serves as the only direct access route between the Lower and Upper Koliwada areas. The three-decade-old bridge, situated within the CRZ buffer zone, was recently declared structurally unsafe following a civic audit. The BMC has sanctioned its reconstruction at an estimated cost ..

Infrastructure Transport

15 Oct 2025

NHAI Completes Rs 15.9 Billion Four-Lane Stretch On ECR

The National Highways Authority of India (NHAI) has completed the four-laning of the 38 km Puducherry–Poondiyankuppam stretch, ending near Cuddalore, in a development that will cut travel time by up to two hours, according to a report by The New Indian Express. The upgraded section, built at a cost of Rs 15.9 billion under the Bharatmala Pariyojana Phase I, marks a major milestone in the ongoing East Coast Road (ECR) widening programme. The project promises a smoother, faster drive for motorists travelling towards Cuddalore, Chidambaram, Sirkazhi, and Nagapattinam. With this completion, 22..

Infrastructure Transport

15 Oct 2025

Encroachments Delay Rs 1 Billion Ghatkopar Bridge Project

The construction of a new cable-stayed rail overbridge at Ghatkopar and the widening of the Andheri–Ghatkopar Link Road (AGLR) have been delayed due to the presence of nearly 250 encroached structures on both sides of the road. In response, Municipal Commissioner Bhushan Gagrani has directed officials to carry out a structural audit of the existing bridge over the railway line and enforce temporary restrictions on heavy vehicles to ensure public safety. The bridge, which starts at the Golibar Road junction near LBS Marg and extends up to the Eastern Express Highway (EEH), serves as a critic..