Finshots Daily Why India’s new Petroleum and Natural Gas Rules matter
Dec 17, 2025
The discussion highlights India's new Petroleum and Natural Gas Rules and their significant impact on the economy. A look back at the 2018 oil discovery near Ashoknagar reveals the costly delays caused by regulatory issues. The host clarifies how antiquated rules hindered investment and production, stressing the importance of updates like 180-day approvals and clearer lease terms. There's hope for Ashoknagar’s production to resume soon, signaling potential gains for local jobs and revenue.
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Local Discovery Blocked By Lease Dispute
- Finshots Daily Host describes ONGC's 2018 oil discovery near his hometown of Ashoknagar and years of stalled production.
- The delay stemmed from a dispute with West Bengal over how to value the lease for stamp duty purposes.
Old Rules Create Costly Ambiguity
- Ambiguity in the 1959 PNG rules about lease valuation blocked approvals and delayed production for years.
- That delay cost ONGC large exploration spending and denied the state upfront revenue and future royalties.
Regulation Choked Domestic Production
- The outdated regulatory regime contributed to falling domestic crude output and rising import dependence.
- Cumbersome approvals and pricing rules discouraged investment even as capital expenditure rose.