How ORDA amend can help India become atma nirbhar in energy needs

India’s ambition to become a self-reliant economy and achieve its $5 trillion economic goal faces a critical hurdle—its heavy reliance on imported oil. With crude oil imports accounting for nearly 90% of its energy needs, the country risks becoming fully import-dependent in the coming years, according to data from the Petroleum Planning and Analysis Cell (PPAC).

The growing reliance on oil imports comes amid rising global energy demand and declining domestic production. To address these challenges, the government has introduced key reforms, including the Oilfields Regulation & Development Act (ORDA) amendment bill, which was recently passed in the Rajya Sabha and awaits approval in the Lok Sabha.

As per the PPAC report, India currently imports nearly 90% of its oil. India's over-reliance on imported oil exposes India to various price fluctuations that could derail its economic progress. The price fluctuations impact critical factors of economic health, such as trade balance, currency and inflation. Given that 70% of India’s reserves remain unexplored, policy reform will go a long way in securing India’s energy self-reliance. Experts fell that the proposed amendments to the Oilfields Regulation & Development Act (ORDA) could go a long way to secure India's oil needs.


ORDA Bill: A bid to modernize energy regulations
The proposed amendment to the ORDA, originally enacted in 1948, aims to align India's energy regulations with global standards. By establishing a clearer regulatory framework, it seeks to boost investor confidence, reduce bureaucratic delays, and support integrated energy projects. The bill introduces provisions for stable petroleum leases, a structured dispute resolution mechanism, and the promotion of green energy initiatives like hydrogen production and carbon capture technologies.

Petroleum Minister Hardeep Singh Puri had earlier emphasized the need for regulatory reforms, forming a Joint Working Group in July to improve the Ease of Doing Business in the energy sector. The amendment bill is seen as a continuation of these efforts.

“From a dispute settlement perspective, the proposed amendment enables the Government to evolve customised alternate dispute resolution mechanisms (ADR) suited to resolve niche and sophisticated disputes relating to petroleum leases and allied aspects. This is a welcome change considering the success story of ADR in the last few decades in India, which has not just reduced the burden of the courts but also resulted into expedited and expert-led dispute resolution.” Tarun Jain, Advocate, Supreme Court of India said.

Economic impact and industry transformation
If passed, the bill is expected to stimulate domestic exploration and production (E&P) by reducing costs and increasing the economic viability of marginal oil fields. Improved investor sentiment could attract global players to India’s upstream sector, unlocking untapped hydrocarbon reserves and enhancing domestic capabilities.

The proposed reforms also encourage enhanced oil recovery (EOR) techniques, enabling companies to maximize the potential of mature fields before moving to new explorations. This balance between cost-effectiveness and resource maximization could significantly strengthen India’s energy resilience.

Path to self-reliance
The ORDA amendment could be a pivotal step toward reducing India’s dependency on foreign oil. By modernizing regulations, the government aims to create an ecosystem that incentivizes exploration and boosts production. This aligns with the larger vision of an Aatmanirbhar Bharat, wherein India can secure its energy needs while fostering economic growth.

If successfully enacted, the amendment has the potential to drive transformational change, much like the economic reforms of the 1990s, and pave the way for sustainable energy independence in the years to come.