The Union Petroleum and Natural Gas Ministry released a draft amendment to the Petroleum Act, 1934, on September 30. It proposes replacing criminal treatment of licence-condition breaches with an administrative penalty process, while creating specific offences for more serious violations. The proposals are open for consultation and are not new rules already in force.
Under the draft, an adjudicating officer could impose a civil penalty of up to ₹2.5 crore for a first licence-condition breach and up to ₹5 crore for later breaches. The officer could also order corrective action and recommend changes to the licence, according to reports examining the draft.
Conducting an activity requiring a licence without obtaining one could carry up to three years in prison, a fine up to ₹25 crore, or both. A continuing violation could attract an additional daily fine. The ministry says its aim is to distinguish regulatory breaches from offences that threaten petroleum operations and public safety.
The ministry’s public notice invites comments and suggestions by October 30. It says the draft and explanatory note are available on its website and that submissions will be examined. The next steps depend on the consultation and legislative process; the announcement does not itself amend the Act.