The Oil Industry (Development) Act, 1974

The Oil Industry (Development) Act, 1974: A Comprehensive Overview

The Oil Industry (Development) Act, 1974 is a legislation enacted to promote the development of the oil industry in India. The Act aims to provide financial assistance and other support to oil industrial concerns for the exploration, production, refining, and marketing of crude oil and natural gas.

Key Provisions:

1. Establishment of the Oil Industry Development Board (OIDB): The OIDB is a statutory body established under the Act to oversee the development of the oil industry.


2. Levy of Excise Duty: A duty of excise is levied on crude oil and natural gas produced in India, including the continental shelf.


3. Financial Assistance: The OIDB provides financial assistance to oil industrial concerns for various activities related to the exploration, production, refining, and marketing of crude oil and natural gas.


4. Power to Appoint Directors: The OIDB has the power to appoint directors to take over the management of an oil industrial concern.

The Act also provides for the following:

• Section 1: Short title and extent


• Section 2: Definitions


• Section 3: Establishment and constitution of the Board


• Section 4: Conditions of service of members


• Section 5: Secretary, officers, consultants, and employees of the Board


• Section 6: Functions of the Board


• Section 7: Principles and conditions of assistance


• Section 8: Power to call for repayment before agreed period


• Section 9: Special provisions for enforcement of claims by the Board

The Act also makes provisions for the following:

• Chapter II: The Oil Industry Development Board


• Chapter III: Finance, accounts, and audit


• Chapter IV: Control by the Central Government


• Chapter V: Miscellaneous