India’s Legislative Proposals for Economic Growth, Modernisation, Job Creation, and Sustainability
- The government has proposed transformative bills in the winter session of Parliament, focusing on economic growth, modernisation, job creation, and sustainability.
- The Oilfields (Regulation & Development) Bill, 2024, will help to modernizes terminology and opens up unconventional hydrocarbon exploration.
- The Merchant Shipping Bill, 2024, will streamlines maritime laws and removes criminal penalties for minor infractions.
- These bills are seen as a blueprint for India’s future, aiming to erase colonial legacies, empower critical sectors, boost job creation, and pledge sustainable practices.
- The Railways (Amendment) Bill, 2024, is primarily expected to simplify legal structures and enhance operational efficiency, leading to job opportunities in infrastructure and maintenance.
- The Coastal Shipping Bill, 2024, will help to reduces logistics costs, making Indian exports more competitive and generating jobs in shipping and related fields.
- The Disaster Management (Amendment) Bill introduces urban disaster management authorities, as well as enhancing safety and creating jobs in hazard monitoring and emergency services.
The Oilfields (Regulation and Development) Amendment Bill
The Oilfields (Regulation and Development) Amendment Bill, 2024, was introduced in Rajya Sabha on August 5, 2024. It amends the Oilfields (Regulation and Development) Act, 1948, regulating the exploration and extraction of natural gas and petroleum.
Expanded Definition of Mineral Oils
- The Act expands the definition of mineral oils to include petroleum and natural gas, coal bed methane, and shale gas/oil.
- Mineral oils do not include coal, lignite, or helium.
Introduction of Petroleum Lease
- The Act provides for a mining lease covering exploration, prospecting, production, making merchantable, and disposal of mineral oils.
- The Bill replaces the mining lease with a petroleum lease, covering similar activities.
Rule Making Powers of the Central Government
- The central government can make Rules on lease grants, lease terms and conditions, conservation and development of mineral oils, methods for oil production, and collection of royalties, fees, and taxes.
- The Bill also includes rules on merger and combination of petroleum leases, sharing of production and processing facilities, obligations of lessees towards environmental protection, and alternative dispute resolution mechanisms.
Decriminalisation of Offences
- The Bill decriminalizes violations of rules, including those related to mineral oils and non-payment of royalty.
- Appeals against the decisions of the Adjudicating Authority will lie before the Appellate Tribunal specified in the Petroleum and Natural Gas Board Regulatory Board Act, 2006.
India’s Merchant Shipping Regulations
- The Ministry of Ports, Shipping, and Waterways is leading the revision of Merchant Shipping regulations.
- The new rules aim to incorporate recent international maritime agreements and streamline ship registration for NRIs, overseas citizens, and corporations.
- The regulations will allow for electronic vessel registration and accept e-documents like log-books and record books.
- Key provisions include a three-tier dispute resolution mechanism, clear definitions of ‘abandoned vessels’ and regulations for ‘unsafe vessels’, and coverage of new areas like marine incidents and emergency response.
- Discussions are underway to implement strict rules to prevent and contain pollution, including air pollution caused by ships at sea.
Railways (Amendment) Bill, 2024
- It was introduced in Lok Sabha on August 9, 2024.
- Primarily aims to modernize and strengthen Indian Railways’ administrative framework.
- Repeals the Railway Board Act of 1905 to simplify legal framework.
- Streamlines the Railway Board to improve operational efficiency.
- Central government to prescribe board members, qualifications, experience, and service terms.
- No new board or body proposed, avoiding additional financial implications.
- The scheme aims to address modern challenges like infrastructure upgrades, technological innovation, and growing passenger and freight demand.
Union Cabinet Approves Coastal Shipping Bill, 2024
- The Union Cabinet has recently approved the Coastal Shipping Bill, 2024, which removes the requirement for Indian-flagged vessels to acquire a general trading license to operate on coastal waters.
- The Bill aims to make coastal shipping provisions more accessible to the industry, focusing on the strategic nature of the sector.
- The legislation is part of Part 14 of the Merchant Shipping Act, 1958, which will be repealed once the Bill is codified into legislation.
- The Bill mainly allows coastal vessels to be operated in inland waterways and creates a coastal shipping database.
- Industry representatives believe the Bill is a significant step in the right direction, but it needs to be supplemented with reliefs in provisions and tax burdens that pose a significant cash flow concern for domestic vessel owners and operators.
- The Directorate General of Shipping has moved to revoke three orders passed in 2018 which allowed foreign-flagged vessels to engage in coastal trade for specific commodities without a regulator’s license.
The Disaster Management (Amendment) Bill, 2024
- Establishment of Urban Disaster Management Authorities (UDMAs) in state capitals and large cities with municipal corporations.
- Creation of a comprehensive disaster database at national and state levels.
- Empowerment of National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs) to take a more active role in disaster planning and response.
- Permission for state governments to establish their own State Disaster Response Forces (SDRFs).
- Statutory status for existing bodies such as the National Crisis Management Committee (NCMC) and the High-Level Committee (HLC).
Criticisms and Challenges:
- Centralisation Concerns: Grants substantial rule-making and regulatory powers to the central government, potentially infringing on state rights.
- Resource Allocation Issues: Concerns raised about the capacity of local authorities to manage new responsibilities under UDMAs.
- Constitutional and Legal Challenges: Questions raised about the Bill’s constitutionality, as disaster management is not explicitly mentioned in the Constitution’s Concurrent List.
- Multiplicity of Authorities: Concerns raised about potential bureaucratic overlaps.
- Role Confusion: The Bill’s aim to streamline disaster management could blur the lines of responsibility among various levels of government.
- Penalties for Non-Compliance: Introduces penalties for obstructing disaster management efforts, including fines up to ₹10,000.
Recommendations for Improvement:
- Strengthen Collaboration Between Central and State Governments: Establish clear guidelines delineating roles and responsibilities of central, state, and local authorities.
- Empower Local Authorities with Resources and Training: Ensure access to adequate resources and comprehensive training programs.
- Enhance Legal and Constitutional Alignment: Conduct a thorough legal review and consider amending the Concurrent List to explicitly include disaster management.
- Promote Community-Based Disaster Risk Reduction: Involve local communities in disaster management.
- Focus on Disaster Risk Reduction and Sustainable Development: Mainstream DRR into broader development planning.
- Streamline Decision-Making Processes: Simplify the structure by ensuring well-defined, non-overlapping mandates.
