Supporting MoPNG | Directorate General of Hydrocarbons (DGH)


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To execute the role and responsibilities Directorate General of Hydrocarbon need to coordinate with multiple government agencies.

Oil Industry development Board (OIDB):

DGH is funded through OIDB (Oil Industry Development Board) grants and every year DGH presents its estimate for fund requirement and obtain necessary approval from OIDB.


Ministry of Environment, Forest and Climate Change (MoEF&CC):

Since exploration and production of oil and gas affects the environment, the concerned contractor is mandated to undertake Environmental Impact Assessment studies, under Article 12 or 14 of the Production Sharing Contract (MPSC), wherein the effect of the said activity on the environment of the affected area is assessed in detail. These studies are carried out in phases, before the commencement of certain operations. Respective Article of the MPSC stipulates the contractor to carry out two such studies. The objective of the first study is to determine the prevailing situation relating to the environment, human beings, flora, and fauna in the contract area and its adjoining regions.
The first study is required to be carried out in two parts, namely, a preliminary part which must be concluded before commencement of any field work relating to a seismographic or other survey, and a final part relating to drilling in the Exploration Period. The latter part of the study requires approval from the government before commencement of any drilling operations. The second Environmental Impact Assessment (EIA) study needs to be completed before the commencement of Development Operations with approval from the government.
The government, on its part, will grant environmental clearances in accordance with the relevant notifications, rules, regulations, and orders concerning EIA issued by the MoEF&CC from time to time. However, wherever forest land is involved, the Contractor shall have to obtain approval of the central government through the state government concerned. DGH generally monitors the adherence to the provisions of Production Sharing Contracts and if necessary facilitate the process of Environmental Clearances by stating the status of the project and PSC.

Ministry of Home Affairs (MOHA):

DGH carves out the blocks to be offered through various licensing rounds. To obtain the clearance on Blocks/areas near international borders, DGH work closely with MOHA. After obtaining requisite approval, DGH offers the blocks to companies.
Oil and Gas companies do hire expats from various countries for their studies and operations. DGH facilitate the clearance of expats from MOHA by validating the status of Block/Field and the requirement of the expat based on operator proposal.
Further, in order to acquire geophysical data in poorly explored and unexplored areas, the Government of India has formulated a new policy for Geo-scientific data generation for hydrocarbons in Indian sedimentary Basins and Agreement to carry out Non-exclusive Multi-Client Geo-scientific surveys/ Activities. DGH works with MOHA to obtain necessary approvals for interested companies participating under this policy.

State Governments:

The Petroleum Mining Lease (PML) and Petroleum Exploration License (PEL) is granted by states for all onland blocks. DGH coordinates with state government to resolve any issue if any in grant of these licenses.
Further, few state governments have established dedicated petroleum directorates to monitor oil and gas activities in their states (such as in Rajasthan, Gujarat, etc.), as and when required DGH works with these directorates for various events/projects and also to fast track the grant of licenses .

Ministry of Defence :

As per the existing procedure, all foreign vessels, drilling rigs, barges, platforms, supply vessels, etc., engaged in Exploration and Production (E&P) activities in India are required to obtain security clearance from Ministry of Defence. DGH facilitate the clearances by validating and providing views for various E&P projects of PSC regime. For Non-exclusive Multi-Client Geo-scientific surveys/ Activities,  DGH works with MOD to obtain necessary approvals for interested companies participating under this policy.

Ministry of Industry:

To facilitate state governments in managing their responsibilities insofar as onshore oil and gas activities are concerned, a few state governments have established dedicated petroleum directorates while in others, the departments of industry and commerce of the respective states are performing such tasks (such as in Assam, Tripura, etc.). DGH coordinates with the Ministry of Industry to provide necessary approvals to Operators and on further facilities if any provided by Ministry of Industry.

Department of Revenue:

All the Government take from Oil and Gas activities like Profit Petroleum, Royalty and Cess is been validated with support of Department of Revenue. Further, DGH also provides input for outcome Budget to Department of Revenue.
Department of Civil Aviation:
For carrying out geological and geophysical surveys like Remote Sensing, Gravity Magnetic Survey, Magnetotellurics surveys etc, air craft requires to fly at lower altitude to acquire the data. DGH coordinates and obtain permission from Department of Civil Aviation to carry out such activities.

Ministry of Coal:

During carving out and offering of CBM Blocks, DGH consults Ministry of Coal and nodal agency for coordination Central Mine Planning and Design Institute (CMPDI ) regarding overlap of any Coal Blocks and proposed CBM Blocks. Any issue if arises related to overlapping area is also resolved with discussion with CMPDI.
Further, recently Government of India announced policy framework for development of Underground Coal Gasification (UCG) in coal and lignite bearing areas in the country. The policy is broadly similar to the existing policy for Coal Bed Methane (CBM) development and DGH is associated with Ministry of Coal and CMPDI on this initiative.


Other PSUs:

Apart from monitoring PSUs, its activities under PSC signed by the companies, DGH also carry out review of National Oil Companies viz ONGC and OIL on regular basis. Further, in case of any Ministry event DGH coordinates with Other Oil PSUs as and when required.