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142 INDIA'S HYDROCARBON OUTLOOK 2024-2025

Enabling regulatory reforms to support 8.2 Statutory Clearances and Licenses
responsible and timely hydrocarbon for Oil & Gas Projects in India
exploration & development.
8.2.1 Expediting Clearances for E&P
• Directorate General of Hydrocarbons Operations: The Oilfields (Regulation and
(DGH): Development) Act, 1948 (amended in 2025)
and the Petroleum and Natural Gas Rules,
Operating under MoP&NG, DGH functions as 1959
the technical regulator for upstream oil and gas
activities. Its key responsibilities include: Environmental protection is not merely a
regulatory requirement rather it is often
Supporting project developers in navigating deeply rooted in the cultural and traditional
the clearance process.
practices of many communities across India.
Identifying and addressing procedural As such, aligning environmental priorities
inefficiencies to expedite licensing and with stakeholder interests and the legislative
approvals. framework is critical to achieving sustainable
and inclusive development in the oil and gas
Facilitating inter-agency communication sector.
and ensuring adherence to regulatory
frameworks. The Oilfields (Regulation and Development)
Act, 1948, as recently amended in 2025, along
In recent years, DGH has spearheaded several with the Petroleum and Natural Gas Rules, 1959,
initiatives to streamline and fast-track clearance empowers the Central Government to regulate
processes. These reforms which are reflected the development and management of oil and
through evolving MoEF&CC policies and gas blocks across the country.
procedural relaxations are documented in detail
in later sections of this chapter. • Traditionally:

• State Authorities: Onshore Petroleum Exploration Licenses
(PEL) and Petroleum Mining Leases (PML)
State Forest Departments, State Pollution were issued by State/UT Governments,
Control Boards (SPCBs), and District based on allocations made by the Centre.
Administrations play a crucial ground-level role
in the clearance and compliance ecosystem. Offshore blocks, in contrast, were managed
Their responsibilities include: and leased directly by the Central
Government.
Conducting field verifications and site
assessments. Upon award of a block and execution of the
relevant production-sharing or revenue-sharing
Forwarding and evaluating clearance contract, operators are required to:
proposals, including forest diversion cases.
Obtain a Petroleum Exploration License
Managing public hearings and consultations (PEL) for non-commercial, exploratory
under the EIA Notification. operations.

Issuing Consent to Establish (CTE) and Secure a Petroleum Mining Lease (PML) for
Consent to Operate (CTO) under pollution commercial development and production.
control laws such as the Water and Air Acts.
Recognizing the need to simplify and accelerate
Monitoring local environmental compliance the licensing process, the 2025 amendment to
and addressing community grievances. the Oilfields Act introduces a significant reform:
the creation of a unified “Petroleum Lease”. This
This interconnected governance framework new lease model replaces the bifurcated PEL
ensures that project approvals in the oil and and PML structure with a single comprehensive
gas sector are subjected to rigorous scrutiny, lease covering both exploration and production
balanced decision-making, and institutional phases.
accountability, thereby aligning economic
growth with ecological preservation.