The Oil Industry (Development) Act, 1974
The Oil Industry (Development) Act, 1974
Overview:
The Oil Industry (Development) Act, 1974 is a legislation enacted to regulate and promote the development of the oil industry in the country. The act aims to ensure the systematic growth of the oil sector, oversee exploration, production, and refining activities, and safeguard the interests of the national economy.
Key Objectives:
To regulate the exploration and exploitation of petroleum resources.
To promote the development of the oil industry.
To ensure the national control and ownership over oil resources.
To provide a framework for licensing and supervising oil-related operations.
To encourage private and public sector participation in the oil industry.
Provisions:
Establishment of regulatory authorities responsible for overseeing oil industry activities.
Licensing procedures for exploration and production.
Rules for the import, export, and transportation of oil.
Financial provisions, including taxes, royalties, and investment incentives.
Safety and environmental guidelines for oil operations.
Penalties and legal actions for violations.
Importance:
Facilitates structured development of oil resources.
Protects national interests in the strategic oil sector.
Encourages investments while maintaining regulatory oversight.
Balances economic growth with environmental and safety standards.
Table Summary:
| Aspect | Description |
|---|---|
| Act Name | The Oil Industry (Development) Act, 1974 |
| Purpose | Regulate and promote development of the oil industry |
| Year Enacted | 1974 |
| Main Objectives | - Control exploration and production- Promote industry growth- Protect national interests |
| Key Provisions | Licensing, regulation, safety standards, financial rules |
| Regulatory Authority | Designated government bodies overseeing oil activities |
| Scope | Exploration, production, refining, import/export |
| Penalties | For violations of act’s provisions |
| Significance | Ensures sustainable, controlled growth of oil sector |
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