• The Bill originally provided for the regulation of oilfields, mines and minerals under the “Mines and Minerals (Regulation and Development) Act, 1948”.

Objective of the Bill:

• Amendment of existing laws: To update and amend existing laws for the oil and gas sector in India.
• Extension in the definition of mineral oil: To make the definition of mineral oil more comprehensive.
• Concept of petroleum lease: To introduce a new concept of petroleum lease.

Key points of the Bill:

• Extension in the definition of mineral oil: The Bill expands the definition of mineral oil to include all naturally occurring hydrocarbons. It includes crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, etc.
• Concept of petroleum lease: The Bill introduces a new concept of petroleum lease. It means leasing for the purpose of prospecting, exploration, development, production, commercialization, carrying away or disposal of mineral oils.

• Distinction between petroleum operations and mining operations: The Bill distinguishes petroleum operations from mining operations. This will help in enforcing specific rules and regulations for the oil and gas sector.
• Dispute settlement and decriminalisation: The Bill provides for effective resolution of disputes and decriminalises several provisions.

Importance of the Amendment:

• Energy Security: This amendment will promote energy security by increasing domestic production and reduce dependence on imports.
• Investment Attraction: This amendment will promote the use of capital and technology by attracting investments in the oil and gas sector and enhance Ease of Doing Business.
• Energy Transition: This amendment will ensure energy transition by promoting the use of next generation clean fuels.
• Law Enforcement: This amendment will establish a strong mechanism for effective implementation of the law.