New Delhi : On a historic day for India’s energy sector, the Oilfields (Regulation and Development) Amendment Bill 2024 was successfully passed in the Lok Sabha. This landmark legislation, driven by Prime Minister Narendra Modi’s vision for energy security, marks a significant step towards self-reliance in oil and gas production.
For decades, India has struggled with a heavy dependence on crude oil imports, a challenge that has only grown with rising energy demands. Today, the country consumes 5.5 million barrels of crude oil per day—an increase from 5.0 million barrels just three and a half years ago. As India’s economy expands towards its Viksit Bharat (Developed India) goal, the demand for energy is set to rise even further, potentially reaching 6.5 to 7.0 million barrels per day in the near future.
Recognizing this reality, the government took decisive action to reform outdated policies that once stifled domestic exploration and production. Earlier, a staggering 1 million square kilometers of India’s 3.5 million sq km sedimentary basins were deemed ‘No-Go’ zones for exploration. This restriction left vast untapped reserves underground while India continued to rely on costly imports.
That has now changed. By opening up these restricted zones, the government has unleashed a new wave of oil and gas exploration. The impact has been immediate—today, 76% of all new prospecting and drilling activities are taking place in these newly accessible regions. This policy shift has sent a strong signal to global investors: India is ready for business, and it is serious about securing its energy future.
Speaking on the occasion, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, emphasized the significance of the bill, stating that the amendments will propel India’s energy sector forward by ensuring policy stability, international arbitration mechanisms, and extended lease periods. He highlighted that the present global energy landscape has changed dramatically, necessitating reforms to promote Ease of Doing Business (EoDB) and align India’s Exploration and Production (E&P) framework with global best practices.
Beyond increasing production, these amendments bring much-needed policy stability. By decriminalizing outdated provisions and making India’s regulatory framework more business-friendly, the government is making it easier for companies to invest with confidence. The inclusion of international arbitration mechanisms further reassures investors, ensuring a fair and predictable business environment.
This bold legislative push is more than just a policy update—it is a commitment to India’s long-term energy security. By strengthening its domestic oil and gas sector, India is taking control of its future, reducing dependence on imports, and paving the way for sustainable economic growth.
As the bill clears its path through Parliament, the message is clear: under the leadership of Prime Minister Narendra Modi and Minister Hardeep Singh Puri, India is no longer just a consumer in the global energy market—it is stepping up as a serious player in exploration and production. The journey towards energy self-sufficiency has begun, and the coming years will determine how effectively India can harness its vast natural resources to fuel its ambitions.
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