Rajya Sabha Passes Major Oilfields Amendment Bill to Boost Investment

The Rajya Sabha has passed the Oilfields (Regulation and Development) Amendment Bill, 2024, aiming to boost investment by delinking petroleum operations from mining. The bill introduces new provisions for policy stability and infrastructure sharing, intending to enhance domestic oil and gas production and decrease reliance on imports.

The Rajya Sabha gave its nod to the Oilfields (Regulation and Development) Amendment Bill, 2024, on Tuesday, aimed at invigorating investment in the sector by delinking petroleum and mining operations. This bill seeks to amend existing legislation to encourage foreign investors and improve domestic production capabilities.

Oil Minister Hardeep Singh Puri emphasized that the new bill offers policy stability and dispute resolution mechanisms, particularly benefiting smaller players. He expressed the need for such legislation to meet the nation's growing energy demands by 2047, as India's domestic oil and gas production significantly lags behind consumption.

While opposition members raised concerns about state rights and the central government's discretion over petroleum leases, Puri reassured them of a balanced approach. The bill introduces 'petroleum leases' and aims to decriminalize certain provisions of the original 1948 Act by employing penalties instead of imprisonment.

(With inputs from agencies.)