The Ministry of Petroleum & Natural Gas (MoPNG) officially notified the Petroleum & Natural Gas Rules 2025 in December 2025, replacing a fragmented regulatory framework with a single consolidated rulebook for the exploration and production (E&P) sector. The new rules modernise India's upstream oil and gas governance and align it with the country's energy transition goals. A landmark provision allows carbon capture and storage (CCS) — the geological storage of greenhouse gases — for the first time under Indian law, making India one of the few countries globally to explicitly permit CCS in its hydrocarbon legislation. The rules also allow operators holding petroleum exploration licences to undertake renewable energy projects on leased blocks, enabling a dual-use model that supports the green energy transition without abandoning proven fossil-fuel infrastructure. The consolidation of E&P licensing under one framework is expected to reduce procedural complexity, improve investor confidence, and accelerate exploration in India's sedimentary basins. Industry observers have noted that the CCS provision is critical for India's net-zero ambitions, as it provides a legal pathway for sequestering CO2 from industrial sources. The rules align with the G20 Clean Energy Transitions framework endorsed during India's G20 presidency.
Petroleum & Natural Gas Rules 2025 Notified: CCS Permitted for First Time in India
The Ministry of Petroleum & Natural Gas notified the Petroleum & Natural Gas Rules 2025, consolidating E&P licensing, allowing renewable energy on leased blocks, and permitting geological storage of greenhouse gases (CCS) for the first time in India — a landmark energy transition policy.
Key facts
- Petroleum & Natural Gas Rules 2025 consolidate all E&P licensing under a single framework, replacing fragmented older rules.
- For the first time in India, Carbon Capture and Storage (CCS) is legally permitted under hydrocarbon legislation.
- Renewable energy projects can now be undertaken on petroleum lease blocks, enabling dual-use of existing infrastructure.
- The rules aim to reduce procedural complexity and boost investor confidence in upstream oil and gas.
- This policy aligns with India's net-zero commitments and the G20 Clean Energy Transitions framework.
6-axis classification
Appears in these topics
Source: PRS/MoPNG
Frequently asked questions
What is Carbon Capture and Storage (CCS)?
CCS captures CO2 from industrial sources and stores it permanently in underground geological formations, preventing it from entering the atmosphere.
Why is the CCS provision in the 2025 Rules significant?
It is the first time Indian law explicitly permits CCS, giving a legal pathway for industrial carbon sequestration supporting net-zero targets.
Can petroleum block operators set up renewable energy projects?
Yes. The 2025 Rules explicitly allow renewable energy projects on blocks held under petroleum exploration licences.
Which ministry notified the Petroleum & Natural Gas Rules 2025?
The Ministry of Petroleum & Natural Gas (MoPNG) notified these rules in December 2025.
Was this useful?
Share corrections or missing exam angles with the editorial team.
Send feedback