India's Hydrocarbon Outlook Report - 2023-2024

India’s Hydrocarbon Outlook 2024 189 A Report on Exploration & Production Activities Prior to commencing exploration and production activities, operators in the oil and gas sector are required to obtain a series of statutory permits and approvals from both the State Government and Central Government bodies. These include essential licenses such as the Petroleum Exploration License (PEL), Petroleum Mining Lease (PML), and a range of environmental clearances such as environment, forest, and wildlife clearances. Additionally, approvals from the Ministry of Defence, the Department of Space, as well as Consent to Establish (CTE) and Consent to Operate (CTO) are mandated. Delays in securing these clearances and approvals can significantly impact project timelines and overall progress in exploration and production endeavors. Statutory clearances play a pivotal role in the upstream oil and gas sector, ensuring that activities are conducted in a manner that does not pose undue harmto the environment. These clearances are imperative for several reasons. They ensure compliance with established environmental laws and regulations aimed at protecting natural ecosystems and preventing degradation. Moreover, the process of obtaining environmental clearances typically involves public participation, facilitating transparency and incorporating public feedback into project designs. This engagement ensures that community concerns are addressed, enhancing overall project acceptance. In terms of regulatory compliance, oil and gas companies must navigate a complex landscape of environmental legislation governed by central and state authorities responsible for appraisal and approval. Simultaneously, obtaining these statutory clearances poses significant challenges and is often a timeconsuming process. This delay adversely impacts the initiation of petroleum operations on-site, ultimately resulting in financial losses for the nation. Role of DGH: The Directorate General of Hydrocarbons (DGH) has undertaken initiatives to expedite the issuance of licenses and clearances by addressing procedural inefficiencies, fostering regular communication with relevant authorities, and ensuring strict adherence to existing regulatory frameworks. Expediting clearances for E&P operations in the upstream oil and gas sector is essential for improving the ease of doing business and attracting investment. By implementing a single-window clearance system, digitalizing processes, streamlining EIAs, improving stakeholder engagement, and building regulatory capacity, governments can create a more conducive environment for E&P activities. These measures not only reduce delays and costs but also ensure that environmental and social impacts are effectively managed, promoting sustainable development in the oil and gas industry. In recent years, the Directorate General of Hydrocarbons (DGH) has undertaken various efforts to streamline and expedite the clearance process, thereby improving efficiency and speed. These efforts, reflected through policy and procedural relaxations by MoEFCC, have been meticulously documented in chronological order to ensure clarity and comprehension.

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