Ministry of Petroleum and Natural Gas
The Oil Industry (Development) Act, 1974, was enacted to provide for the establishment of a Board for the development of the oil industry and for that purpose to levy a duty of excise on crude oil and natural gas and for matters connected therewith. This act aims to promote the growth and development of the oil industry in India. While the Act does not specify a particular ministry, it falls under the purview of the Ministry of Petroleum and Natural Gas in India.
Enactment Date, Number of Chapters, Number of Sections:
The Oil Industry (Development) Act, 1974, was enacted on September 26, 1974. The Act is structured into 5 chapters and 31 sections, along with a schedule. These sections cover various aspects of the oil industry, including the establishment of the Oil Industry Development Board, its functions, financial matters, and miscellaneous provisions.
Act Governed By:
The Act is primarily governed by the provisions outlined within its sections. It establishes the Oil Industry Development Board, defines its composition, functions, and powers, and outlines the financial framework for the development of the oil industry. The Act also specifies the duties of excise and the powers of the Central Government to make rules and issue directions.
On Whom It Is Applicable:
The Oil Industry (Development) Act, 1974, is applicable to the Oil Industry Development Board, its members, officers, and employees, and to all oil industrial concerns and other persons engaged in the oil industry in India. This includes companies, corporations, and co-operative societies involved in the exploration, production, refining, and marketing of mineral oil.
Penalties/Punishments:
The Act prescribes penalties for non-compliance with its provisions and the rules made thereunder. These include:
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Imprisonment which may extend to one year, or with fine which may extend to five thousand rupees, or with both for contravening any rules made under the Act.
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Punishment for each day after the first conviction during which the offence continues, with a fine which may extend to one hundred rupees.
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Other penalties as may be prescribed by rules made under the Act.
Important Pointers:
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The Act establishes the Oil Industry Development Board to promote the development of the oil industry.
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It defines key terms related to the oil industry, including “mineral oil,” “petroleum,” and “oil industrial concern.”
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The Act empowers the Central Government to levy a duty of excise on crude oil and natural gas.
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It outlines the functions of the Board, including providing financial assistance, guaranteeing loans, and promoting research and development.
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The Act specifies the principles and conditions for granting assistance to oil industrial concerns.
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It empowers the Board to call for repayment of loans before the agreed period.
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The Act provides for the creation of an Oil Industry Development Fund.
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It outlines the powers of the Central Government to control and regulate the oil industry.
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The Act also includes provisions for penalties for violations and protection of actions taken in good faith.
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The Act has been amended over time to adapt to changing needs and circumstances.
Act Copy: