India's Hydrocarbon Outlook – 2022-2023

169 DGH: 3 DECADES OF UNLOCKING INDIA'S HYDROCARBON POTENTIAL development of the Indian economy as well as being a crucial sector among the eight core industries of India. Before beginning exploration and production activities, contractors or operators of oil and gas blocks must get statutory permits and approvals from various State and central government bodies. Petroleum Exploration License (PEL), Petroleum Mining Lease (PML), environmental clearances such as -- environment clearance, forest clearance, wildlife clearance and so on, clearances from the Ministry of Defence, clearance from the Department of Space, Consent to Establish (CTE), Consent to Operate (CTO), and many others are among the clearances and approvals. Delays in acquiring such clearances and approvals have an impact on the overall timelines and progress of exploration and production projects. Environmental clearances are an important part of the upstream exploration and production (E&P) oil and gas sector, as they are required to ensure that oil and gas activities do not cause undue harm to the environment. The following premises reinforce the necessity of grant of environment-related clearances in upstream exploration and production oil and gas industry: 1. Compliance with environmental laws and regulations : Governments have established various environmental laws and regulations to protect the environment and prevent environmental degradation. Obtaining environmental clearances ensures that the E&P activities of the O&G industry are in compliance with these laws and regulations. 2. Identification of potential environmental impacts : Environmental clearances require a thorough EIA (environmental impact assessment) of the proposed exploration and production activities. The EIA identifies potential environmental impacts and outlines measures to mitigate them. 3. Protection of sensitive habitats and species : E&P activities can have significant impacts on sensitive habitats and species. Environmental clearances ensure that these habitats and species are protected by requiring measures to minimize impacts. 4. Public participation and transparency : Environmental clearances often involve a public participation process, where the public can provide feedback and raise concerns about the proposed activities. This process ensures transparency and allows for incorporation of public concerns into the project design. 5. Risk Management : E&P activities in the O&G industry involve significant risks, including the risk of spills, leaks, and other accidents. Environmental clearances require risk assessments and mitigation measures to minimize these risks. Regulatory Compliance of environmental legislations for Oil and Gas E&P Operators: For oil and gas companies, regulatory compliance is a multi-faceted process and project proponents need to comply with regulations notified from central and state appraising and approving authorities. The DGH has endeavoured to expedite the timely issuance of licence and clearances by implementing the following measures: 1. Comprehending the shortcomings in the processes for streamlining the procedures. 2. Adopting frequent communication channels with the competent authorities at all levels responsible for granting clearances. 3. Working out way forward, while ensuring the compliances to the existing rules for early clearances by rigorous follow-ups and pursuance by the officials, especially members of NECC.