New Delhi, Dec 3 (NationPress) Prime Minister Narendra Modi on Tuesday commended the Rajya Sabha for its endorsement of the pivotal amendments to the Oilfields (Regulation and Development) Act 1948, which are designed to enhance the ease of doing business and accelerate the advancement of India’s swiftly evolving energy sector.

“This is a significant legislation that will bolster energy security and contribute to a prosperous India,” PM Modi stated on X while responding to Petroleum and Natural Gas Minister Hardeep Singh Puri’s remarks.

Praising this as “a historic advancement towards the future,” Puri remarked, “The monumental amendments proposed will further fortify and drive India’s energy sector under the guidance of Prime Minister Narendra Modi, ensuring policy stability, international arbitration, and extended lease durations, among other benefits.”

Since petroleum (crude oil/natural gas) is located in the pore spaces of subsurface rocks and is extracted through drilling, the removal of terms such as ‘mine,’ ‘quarried,’ or ‘excavated’ as indicated in the current Act will eliminate ambiguity and facilitate Ease of Doing Business in a sector that is heavily reliant on technology, the minister elucidated.

The term ‘mineral oil’ is conventionally recognized as encompassing natural gas and petroleum. As unconventional hydrocarbon resources continue to be discovered and developed, updating the definition to reflect modern interpretations is essential, he emphasized.

The definition of a mining lease is being modified to clarify that leases granted before the initiation of the Oilfields (Regulation and Development) Amendment Act will retain the designation of mining leases.

Subsequently, the use of this terminology will cease, and the term petroleum lease as defined in clause (f) will be adopted.

This initiative aims to attract investors for the comprehensive development of the field, which includes planning for efficient reservoir management practices and instilling confidence to invest in capital-intensive Enhanced Recovery methods.

The provision seeks to empower the government to establish regulations for environmental protection and to foster the development of green energy projects and implement energy transition measures, enabling both the government and companies to achieve their climate objectives.

The minister highlighted that smaller operators and new entrants frequently encounter challenges in conducting operations due to the substantial costs associated with infrastructure and facilities. This provision allows the government to create rules that facilitate the sharing of production and processing facilities and other infrastructure between multiple lessees.

The proposed amendments establish a comprehensive framework for the imposition of penalties and the processing of appeals arising from them, supported by the establishment of an adjudication authority, mechanisms, and appeals, the minister added.