March 12, 2025
Lok Sabha MP Pratima Mondal’s speech on The Oilfields (Regulation and Development) Amendment Bill, 2024
Madam Chairperson, on behalf of All India Trinamool Congress, I rise to speak on the Oilfields (Regulation and Development) Amendment Bill, 2024. Madam, our economic growth depends on trade as well as import/export policies. The trend of our country is that we are importing heavily, and still, our country is heavily dependent on foreign countries for importing crude oil. The hon. Minister, Shri Hardeep Singh Puri ji is trying his level best to make our country self-sufficient. But I would like to know from the hon. Minister what the plan of this Ministry is to make our country self-sufficient in the field of oil sector. Madam, our country is undergoing a severe crisis due to skyrocketing fuel prices. I would also like to know from the hon. Minister how we give relief to the poor people as they are heavily burdened due to high fuel prices. Madam, now, I come to the Bill. The most worrying part of the Bill is that it opens the door for private companies to dominate oil fields, allowing big corporations to extract mineral oil with very little Government control. The newly added Section 4A says that no one can carry operations without a valid lease, but it does not give the State enough power to strictly control or monitor exploration activities. This means, the control of natural resources will shift fromि theि Governmentि toि privateि companies,ि reducingि theि States’ि directि authority over oil production. This goes against the principle of national sovereignty and could lead to corporate exploitation of resources. Madam, another major concern is the amendment to Section 6 which now promotes not only extraction but also long-term exploration of oil fields. Even worse, the Central Government has been given the power to extend the lease period indefinitely, allowing oil companies to exploit these fields for decades without any strict environmental checks. This is a direct violation of India’sि commitmentि toि fightि climateि changeि underि theि Parisि Agreementि andि other global environmental treaties. If the Government continues to allow unchecked exploration, it will have severe long-term impact on the environment and public resources. Now, I come to Section 5 which gives the Central Government full authority to grant, extend or renew petroleum leases without seeking approval from the State Government. Kindly allow me to finish my speech. Thank you, Madam. Additionally, the newly introduced Section 4A prevents the State Governments from issuing exploration licence, handing over complete control of oil exploration to the Central Government. These moves are unconstitutional, and they directly violate the federal structure of our country. Then, the Bill also introduces a provision for utilization of leases across States, meaning if an oil or gas reservoir extends across two or more States, the Central Government can club them under a single lease agreement. This will allow big corporate companies to extract resources from multiple States under one license, increasing their profits while reducing the revenue that individual States would otherwise receive. Additionally, the Bill does not include any clear rules for environmental protection, labour rights or local development, proving that the biggest beneficiary of this Bill is not the public but large companies. Another major flaw is there in Section 6A which plays the responsibility of decommissioning and restoring the site entirely on private companies. However, the Bill does not ensure any strict State supervision, which means companies could easily abandon damaged sites without proper restoration, causing serious environmental damage like, soil erosion, groundwater pollution, deforestation, etc. What the Bill encourages is the use of carbon capture utilization and storage, which will allow prolonged fossil fuel exploration going completely against India’s climate change. The Bill also makes no mention of protecting the rights of indigenous, tribal or local communities who live in oil rich regions like Assam, Gujarat, Jharkhand. The large scale of oil exploration in these States has resulted in forced displacement, land grabbing and destruction of biodiversity. Section 9 is highly unfair towards small and medium scale oil operators. The Bill imposes a fixed penalty of Rs.25 lakh for violating Section 4A or Section 6A, along with an additional fine of Rs.10 lakh per day for continuing non-compliance, allowing oil corporation to dominate the oil sector. The major concern is the amendment to Section 5, which now allows the Central Government to make new rules, extend petroleum leases and do renewal of licences. The Bill also completely contradicts India’s climate goals. While India has committed to achieving net zero carbon emission by 2070, the Bill promotes longer lease periods, automatic renewals without environmental reassessment and carbon capture utilization and storage, which will only increase fossil fuel exploration. Madam, just allow me a minute to speak about my constituency. Ashok Nagar oil field was discovered in 2018 by Oil and Natural Gas Corporation. This is the first oil field in West Bengal and west India. This is known as Jagdishpur-Haldia-Dhamra Natural Gas Pipeline project. I would like to know one thing from the hon. Minister.
