Royalties in respect of mineral oils
Section 6A of the Oilfields (Regulation and Development) Act, 1948 deals with royalties in respect of mineral oils. The holders of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral oil [pr The Act came into force on 25 Oct 1949.
1[6A. Royalties in respect of mineral oils.--- (1) The holders of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral oil 2[produced] or collected by him from the leased area after such commencement, at the rate for the time being specified in the Schedule in respect of that mineral oil.
(2) The holder of a mining lease 3[or petroleum lease] granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall pay royalty in respect of any mineral oil 2[produced] or collected by him from the leased area at the rate for the time being specified in the Schedule in respect of that mineral oil.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), no royalty shall be payable in respect of any 4[mineral oils] which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of 5[mineral oils].
6[(4) The Central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral oil with effect from such date as may be specified in the notification and different rates may be notified in respect of same mineral oil 2[produced] or collected from the areas covered by different classes of 7[petroleum leases]:
Provided that the Central Government shall not fix the rates of royalty in respect of any mineral oil so as to exceed twenty per cent. of the sale price of the mineral oil at the oilfields or the oil well-head, as the case may be.
(5) If the Central Government, with a view to encourage exploration in off-shore areas, is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally, either absolutely or subject to such conditions as may be specified in the notification, mineral oil produced from such areas from the whole or any part of the royalty leviable thereon.]
Section 6A, The Oilfields (Regulation and Development) Act, 1948 (Act 53 of 1948).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 2
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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State of Gujarat v. Union of India (Ministry of Petroleum & Natural Gas)
Court's Decision & Legal Precedent
DATE VERIFIED DB Judgment discusses Petroleum and Natural Gas Rules made under Oilfields Act ss.5 and 6 (esp. Rule 14 royalty) as the subordinate framework implementing s.6A royalty; State challenge engages rule-making under s.5.
On this section: s.6A — Royalties in respect of mineral oils; wellhead sale-price basis
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 6A
What have the courts held on Section 6A of the Oilfields (Regulation and Development) Act?
State of Gujarat v. Union of India (Ministry of Petroleum & Natural Gas) (30 Nov 2013) is the leading judgment on this section among those set out below: s.6A — Royalties in respect of mineral oils; wellhead sale-price basis.
How do I find court cases under Section 6A of the Oilfields (Regulation and Development) Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Oilfields (Regulation and Development) Act 6A, section 6A Oilfields (Regulation and Development) Act, section 6A of the Oilfields (Regulation and Development) Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with State of Gujarat v. Union of India (Ministry of Petroleum & Natural Gas) (30 Nov 2013).
What should I read with Section 6A of the Oilfields (Regulation and Development) Act, and has it changed?
2 other provisions in this corpus refer back to it.
When did Section 6A of the Oilfields (Regulation and Development) Act come into force?
Section 6A of the Oilfields (Regulation and Development) Act, cited as Oilfields (Regulation and Development) Act 6A, came into force on 25 Oct 1949, having been enacted on 08 Sep 1948. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 21 Oct 2026. This page is not a substitute for legal advice.