Oil Industry ( Development) Act, 1974.

Oil Industry ( Development) Act, 1974.

An Act to provide for the establishment of a Board for the development of oil industry and for that purpose to levy a duty of excise on crude oil and natural gas and for matters connected therewith.

Oil Industry Development Board

The Oil Industry Development Board was established on 13th January, 1975 under the Oil Industry (Development) Act, 1974 to provide financial assistance for development of the Oil Industry.

The Board is mandated under the said Act to provide assistance by way of making grants or advancing loans, providing guarantees on loans and deferred payments of oil industrial concerns, underwriting or subscribing to  the stock, shares, bonds and debentures  of oil industrial concerns. The assistance is provided by the Board for undertaking the following activities:

1. Prospecting for and exploration of mineral oil within India (including the continental shelf thereof) or outside India;
2. The establishment of facilities for production, handling, storage and transport of crude oil;
3. Refining and marketing of petroleum and petroleum products;
4. The manufacture and marketing of petrochemicals and fertilizers;
5. Scientific, technological and economic research which could be, directly or indirectly, useful to oil industry;
6. Experimental or pilot studies in any field of oil industry;
7. Training of personnel, whether in India or outside, engaged or to be engaged in any field of oil industry and such other measures as may be prescribed.

Under section 21 and 22 of this act, provided the Central Government power to require persons engaged in oil industry to maintain and produce books, accounts and records relating to business and inspection thereof. The board shall carry out such directions as may be issued to it from time to time by the Central Government for the efficient administration of this act.