New Delhi, Mar 12 (PTI) Parliament on Wednesday passed a bill that seeks to amend the existing law governing exploration and production of oil and gas as well as delink petroleum operations from mining operations to boost investment in the sector.

The Lok Sabha cleared the Oilfields (Regulation and Development) Amendment Bill, 2024, on Wednesday. The bill was passed by the Rajya Sabha on December 3, 2024.

Replying to the discussion on the bill, Petroleum and Natural Gas Minister Hardeep Singh Puri said India is the only country in the world where in the reference period of last three years, the prices of petrol and diesel have actually come down.

"We have brought down the prices of petrol and diesel because the prime minister reduced the central excise (duty) on two occasions," Puri asserted and took a swipe at the Opposition, saying that Congress-ruled states have increased VAT (Value Added Tax) on petrol and diesel.

Prices in neighbourhood countries are 15 to 25 per cent higher than in India. Equally, prices in Western Europe and US are much higher than in India, he said.

While moving the bill for consideration and passage in the Lok Sabha, Puri said it does not alter the existing level-playing field for both public and private sectors.

"The oil bill 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 the condition. The bill also does not alter the rights of the states, which will continue to give petroleum leases and receive royalties as before.

"The bill also does not alter the existing level-playing field and offers no preference to either the private or the public sector," the minister said.

Among others, the bill aims to decriminalise some of the provisions of the original Oilfields (Regulation and Development) Act, 1948, by introducing "penalties, adjudication by an adjudicating authority and appeal as against the order of adjudicating authority".

Besides, it seeks to introduce 'petroleum lease' and expands the definition of mineral oils to include crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil and gas hydrate, with a view to raising domestic output and cutting reliance on imports, he said.

In his reply, Puri stressed that the government is taking a holistic approach, and that the overall strategy is to increase domestic exploration and production as also to increase clean energy.

Elaborating further, Puri said the long-term strategy for energy security revolves around the trilemma of availability, affordability and sustainability.

"So far, we have navigated all three very successfully," he noted.

Currently, India is importing oil from 39 countries and in fact, also buying from a 40th country.

"We will buy from wherever we have to... we do not distinguish between the sources of our supply," the minister said.

Congress leader Manish Tewari, while initiating the discussion, said the draft law "lacks vision and roadmap".

Referring to oil imports, Tewari claimed that India was not "future ready".

"What is required is a roadmap to make India energy sufficient, which unfortunately is completely missing. What is the government planning to do to encourage independent oil explorers? Is there anything in the bill that incentivises them," Tewari asked.

As far as the bill is concerned, he said it makes minor changes here and there but a vision is missing. "You're not a government that was sworn in yesterday, but 11 years ago". PTI GJS RAM ANU ANU