Section 6 of Oil Industry (Development) Act, 1974, inter-alia, provides that the Board may render assistance for scientific, technological, economic research, which could be directly or indirectly useful to oil industry. Hydrocarbon Vision 2025 also mentions that sufficient resources may be made available for appraising the unexplored/partly explored areas through Oil Industry Development Board cess and other innovative resources mobilization approaches.

Upstream Sector

In respect of OIDB grant in aid for upstream sector, a Peer Group comprising DGH, Director (Exploration) ONGC, Secretary (OIDB) & JS (Exploration) MOPNG has been constituted by OID Board  to examine these proposals in the first instance and give its recommendations.  The recommendations of the Peer Group are submitted before the OID Board for taking a decision.  Approval of Central Government is obtained for projects  with an outlay of more than Rs.25 lakh, approved by OID Board before release of grant in terms of Rule 24 of OID Rules.  Since 1998-99, the OID Board/Central Government has approved more than 47 projects at an estimated cost of Rs.133 crore approximately.   Out of this, 42 projects have been completed.   The remaining 6 projects are under implementation . Since inception till date, OIDB has released grants to the tune of   Rs. 88.59 crore approximately for the R&D activities related to upstream sector.

Downstream Sector

The projects related to downstream sector are considered and recommended by Scientific Advisory Committee (SAC) on Hydrocarbons set up by the Ministry.  These projects are primarily funded through CHT.  The Scientific Advisory Committee is headed by Shri M.B.Lal, Ex-CMD, HPCL.  The members representing SAC are eminent persons in various fields of Oil Industry including Secretary, OIDB. The tenure of this Committee is three years after which it is reconstituted.  Progress of R&D projects in the downstream sector is also reviewed by Scientific Advisory Committee on Hydrocarbons in its meetings. 

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