Energy disputes—India—Q&A guide
Energy disputes—India—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Energy disputes—India—Q&A guide
  • 1. Describe the areas of energy development in the country.
  • 2. Describe the government’s role in the ownership and development of energy resources. Outline the current energy policy.
  • 3. Describe any industry-standard form contracts used in the energy sector in your jurisdiction.
  • 4. What rules govern contractual interpretation in (non-consumer) contracts in general? Do these rules apply to energy contracts?
  • 5. Describe any commonly recognised industry standards for establishing liability.
  • 6. Are concepts of force majeure, commercial impracticability or frustration, or other concepts that would excuse performance during periods of commodity price or supply volatility, recognised in your jurisdiction?
  • 7. What are the rules on claims of nuisance to obstruct energy development? May operators be subject to nuisance and negligence claims from third parties?
  • 8. How may parties limit remedies by agreement?
  • 9. Is strict liability applicable for damage resulting from any activities in the energy sector?
  • More...

Energy disputes—India—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to energy disputes in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Trilegal—Jafar Alam; Deep Rao Palepu; Arjun Agarwal; Shreya Singh

1. Describe the areas of energy development in the country.

India has made considerable advances in diversifying its energy resource base, although its energy needs are presently met predominantly through coal-based thermal power. As of November 2019, the total installed capacity in India is 365GW, with coal (55.8 per cent), hydro (13.7 per cent), wind (10.1 per cent), solar PV (8.8 per cent), natural gas (6.8 per cent), bioenergy and waste (2.7 per cent), nuclear (2 per cent) and oil (0.1 per cent).

Conventional

Oil and gas

In the oil and gas sector, improved upstream exploration and production policies such as the Open Acreage Licensing Policy (OALP) and the Hydrocarbon Exploration and Licensing Policy (HELP) have been introduced since 2016 to incentivise private sector participation. Further policy reforms to the HELP were notified in February 2019, which aim to increase exploration activities and attract domestic and foreign investment in unexplored or unallocated areas of sedimentary basins. An important change in this regard is that the government will not charge any share of profit on hydrocarbons until the production stage. The policy changes have received a favourable industry

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