Oil Industry Development Board (Government of India)

Source: http://oidb.gov.in/index1.asp?linkid=128

The Oil Industry (Development) Act, 1974 was enacted following successive and steep increase in the international prices of crude oil and petroleum products since early 1973, when the need of progressive self-reliance in petroleum and petroleum based industrial raw materials assumed great importance. The following objects were included in the statement of Objects and Reasons for the OIL INDUSTRY (DEVELOPMENT) BILL,1974 :

(i)       The programs for securing self-reliance in petroleum &

      petroleum based raw materials should be rapidly stepped up.

(ii)      Necessary resources for execution of such programs must be

      assured.

(iii)    For these purposes cess be levied on crude oil and natural

      gas to create an Oil Industry (Development) Fund.

(iv) The fund would be used exclusively to provide financial

      assistance to the organizations engaged in development

      programs of oil industry.

Preamble to the Oil Industry (Development) Act clarifies that the purpose of the Act is to provide for the establishment of a Board for development of oil industry and for that purpose to levy duty of excise on crude oil and natural gas and for matters connected therewith.

     The OIDB is a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property both movable and immovable, and to contract, and shall by the said name sue and be sued.