Rajya Sabha passes Oilfields Bill to delink petroleum from mining

The Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill aimed at delinking petroleum operations from mining operations, broadening the scope of the expression “mineral oils” and introducing the concept of “petroleum lease” among other provisions. The Opposition, during the discussions, said some provisions in the Bill are against the interest of the States and also demanded that the benefit of the decrease in the prices of crude oil must be shared with the consumers too.

Oil Minister Hardeep Singh Puri said the Bill that the new legislation is for granting lease on stable terms, strengthening petroleum operations through rules framed for grants of leases or licences, their extension or renewal, sharing of production and processing facilities including infrastructure and safety at oilfields. He said the Bill is providing for efficacious dispute resolution, decriminalising the provisions of the previous Act by introducing penalties, and creating an environment for facilitating energy transition

“We need oil and gas sector for 20 more years. We need to bring this legislation here to provide a win-win confidence not only to our own operators but also to foreign investors so that they can come and do business here with a view to benefit everyone,” Mr. Puri said replying to the debate on the Bill.

DMK MP NR Elango demanded that the Bill must be sent to a select committee as certain definitions are against the federal rights of the States. “The Bill seeks to expand the meaning of mineral oils. The word ‘mine’ is omitted from the definitions. mining lease is replaced with petroleum lease. There comes the problem,” he said adding that the scope of the Bill is expanded to give retrospective affect to the lease agreements entered prior to this Bill,” he said. “Why do you want to change mining lease to petroleum lease? Will you get petrol without mining,” he asked.

Mr. Puri assured the members that the Bill is not about handing over the sector to the corporate sector. “The petroleum mining leasing will still have to be granted by state governments, no matter what changes have been brought about,” Mr. Puri said adding that the Centre has nothing to hide on this and this bill is a win-win for the states.

During the debate, the Opposition reminded the BJP that before 2014, the party had promised to bring down the price of petrol o ₹50 per litre, but the prices increased even when the crude prices were low. Trinamool Congress MP Dola Sen, AAP MP Sanjay Singh and other speakers from the Opposition raised this issue. Mr. Singh alleged that the Bill is to invite big corporate houses in the sector. Ms. Sen said the Centre is trying to disinvest the PSUs in the oil sector. CPI’s P.P. Suneer said the BJP’s priority is corporate comfort over the exploitation of country’s precious natural resources. “State-led enterprises like ONGC should be prioritised instead of private players in the sector for the sake of economy and people,“ Mr. Suneer said.

Published - December 03, 2024 11:04 pm IST