The Oil Industry (Development) Act, 1974

(1) This Act may be called the Oil Industry (Development) Act, 1974. (2) It extends to the whole of India.

In this Act, unless the context otherwise requires,-- (a) "assistance" means assistance rendered under section 6; (b) "Board" means the Oil Industry Development Board established under section 3; (c) "Chairman" means the Chairman of the Board; (d) "court" means the High Court or the Court of Judicial Commissioner within the local limits ofwhose jurisdiction the defendant or respondent carries on the whole or a substantial part of hisbusiness, and where the Central Government has, by notification in the Official Gazette, and subjectto such restrictions, limitations and conditions, as it thinks fit, empowered any court of civiljurisdiction subordinate to the High Court or, as the case may be, the Court of the JudicialCommissioner, to exercise all or any of the powers conferred by this Act, such court; (e) "crude oil" means petroleum in its natural state before it is refined or otherwise treated butfrom which water and foreign substances have been extracted; (f) "fertilisers" means such oilbased chemical compounds which when employed in agricultureprovide either single or multiple plant nutrients in any one or more of the forms of nitrogen,phosphorus and potash; (g) "member" means a member of the Board and includes the Chairman; (h) "mineral oil" includes petroleum and natural gas; (i) "natural gas" means gas consisting primarily of hydrocarbons obtained from oil wells or gaswells; (j) "oil industrial concern" means any company, corporation or co-operative society, which isengaged or which is to engage in any activity referred to in clause (k); (k) "oil industry" includes all activities by way of prospecting or exploring for or production ofmineral oil, refining, processing, transportation, storage, handling, and marketing, of mineral oil,production and marketing of all products, down-stream of an oil refinery and the production offertilisers and petro-chemicals and all activities directly or indirectly connected therewith; (l) "petro-chemicals" means chemicals, whether organic or inorganic, derived from petroleumincluding crude oil, natural gas, condensates, refined petroleum fractions and refinery gases; (m) "petroleum product" means any commodity made from petroleum or natural gas and includesrefined crude oil, processed crude petroleum, residuum from crude petroleum cracking stock,uncracked fuel oil, fuel oil, treated crude oil residuum, casing head gasoline, natural gas gasoline, naphtha, distillate gasoline, kerosene, bitumen, asphalt and tar, waste oil, blended gasoline,lubricating oil, blends or mixture of oil with one or more liquid products or by-products derived fromoil or gas and blends or mixtures of two or more liquid products or by-products derived from oilcondensate and gas or petroleum hydrocarbons not specified hereinbefore; (n) "prescribed" means prescribed by rules made under this Act.

(1) With effect from such date as the CentralGovernment may, by notification in the Official Gazette, appoint in this behalf, there shall be establishedfor the purposes of this Act a Board to be called the Oil Industry Development Board. (2) The Board shall be a body corporate by the name aforesaid having perpetual succession and acommon seal, with power to acquire, hold and dispose of property, both movable and immovable, and tocontract, and shall by the said name sue and be sued. (3) The Board shall consist of the following members, namely:-- (a) not more than three members to be appointed by the Central Government to represent theMinistry or Ministries of the Central Government dealing with petroleum and chemicals; (b) two members to be appointed by the Central Government to represent the Ministry of theCentral Government dealing with finance; (c) not more than five members to be appointed by the Central Government to represent theCorporations, being Corporations owned or controlled by the Central Government, engaged inactivities referred to in clause (k) of section 2; (d) two members of whom one shall be appointed by the Central Government from amongstpersons who, in the opinion of that Government, have special knowledge or experience of oil industryand the other shall be appointed by that Government to represent labour employed in the oil industry; (e) the Secretary to the Board, ex officio. (4) The Central Government shall appoint the Chairman of the Board. (5) The term of office of the members of the Board (other than the members appointed by virtue ofoffice) and the manner of filling vacancies among, and the procedure to be followed in the discharge oftheir functions by, the members shall be such as may be prescribed. (6) Subject to such conditions and restrictions as may be prescribed, the Board may constituteStanding Committees or ad hoc Committees for exercising any power or discharging any duty of theBoard or for inquiring into, reporting and advising on, any matter which the Board may refer to them: Provided that a Standing Committee shall consist exclusively of members of the Board. (7) No act or proceeding of the Board or of any Committee constituted under sub-section (6) shall beinvalidated merely by reason of-- (a) any vacancy in, or any defect in the constitution of, the Board or such Committee; or (b) any defect in the appointment of a person acting as a member of the Board or suchCommittee; or (c) any irregularity in the procedure of the Board or such Committee not affecting the merits ofthe case.

Every person appointed as a whole-time member of theBoard shall be entitled to such salary and allowances and such conditions of service in respect of leave,pension, provident fund and other matters as may, from time to time, be fixed by the Central Governmentand the other members of the Board and such of the members of any ad hoc Committee constituted under sub-section (6) of section 3 as are not members of the Board shall be entitled to such allowances, if any,and such other conditions of service, as may be prescribed.

(1) The Central Governmentshall appoint a Secretary to the Board. (2) Subject to rules made in this behalf, the Secretary shall exercise such powers and perform suchduties as may be prescribed or as may be delegated to him by the Board. (3) The Secretary shall be entitled to such salary and allowances and such conditions of service inrespect of leave, pension, provident fund and other matters as may, from time to time, be fixed by theCentral Government. (4) Subject to such conditions and restrictions as may be prescribed, the Board may appoint suchconsultants as may be necessary for the performance of its functions on such terms and conditions as itmay determine from time to time. (5) Subject to such conditions and restrictions as may be prescribed, the Board may appoint suchother officers and employees as may be necessary for the performance of its functions and pay them suchsalaries and allowances as it may determine from time to time.