Parliament Budget Session Day 3: Lok Sabha passes Oilfields Amendment Bill 2024 amid opposition uproar

The Lok Sabha on Wednesday passed the Oilfields (Regulation and Development) Amendment Bill, 2024, which seeks to amend the existing law governing oil and gas exploration and delink petroleum operations from mining to attract investments in the sector.

Union Petroleum Minister Hardeep Singh Puri, while moving the bill for consideration and passage, assured that the amendments would not affect the rights of states or give preferential treatment to either public or private players in the oil sector.

"The bill aims to address concerns of global investors by ensuring operational stability in terms of lease tenure and conditions. It also decriminalises certain provisions of the 1948 Act and introduces penalties, an adjudicating authority, and an appellate mechanism," Puri said.

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What is Oilfields (Regulation and Development) Amendment Bill?

The Oilfields (Regulation and Development) Amendment Bill, 2024, which was passed by the Rajya Sabha on December 3, 2024, seeks to amend the Oilfields (Regulation and Development) Act, 1948, which regulates the exploration and extraction of natural gas and petroleum.

The bill broadens the definition of mineral oils to include crude oil, natural gas, condensate, coal bed methane, shale gas and oil, tight gas and oil, and gas hydrate, while clarifying that coal, lignite, and helium are excluded.

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It also replaces the existing mining lease with a petroleum lease, covering activities such as exploration, prospecting, production, processing, and disposal of mineral oils. Existing leases issued under the previous law will remain valid.

Meanwhile, the Lok Sabha witnessed protests from opposition members, primarily from Congress and DMK, over the government’s approval of a renewable energy project near the India-Pakistan border.

Congress MP Manish Tewari raised concerns during Question Hour, stating that national security and energy security must be aligned. He pointed out that the project extends up to one kilometre from the International Border (IB), whereas security protocols mandate a 10-km buffer for large infrastructure projects.

In the Rajya Sabha, discussions on the working of the Railway Ministry were postponed until Monday due to Holi, with proceedings adjourned for the day.