The Indian Institute of Petroleum and Energy Bill, 2017 was introduced on 18th July 2017 by the Minister of State for Petroleum and Natural Gas, Mr. Dharmendra Pradhan in Lok Sabha. It was passed by Lok Sabha on 4th August 2017 and received the assent of President Ram Nath Kovind on the 5th January 2018.

The preamble of the Indian Institute of Petroleum and Energy Bill, 2017 reads as: 

“An Act to declare the institution known as the Indian Institute of Petroleum and Energy to be an institution of national importance and to provide for its incorporation and matters connected in addition to that or incidental thereto".

The principal objective of the Indian Institute of Petroleum and Energy Bill, 2017 is to inaugurate the Indian Institute of Petroleum and Energy in Visakhapatnam district of Andhra Pradesh thereby government of India fulfilling the commitment made to the Andhra Pradesh after Telangana was formed out of it to establish a Petroleum University as per the Andhra Pradesh Reorganisation Act, 2014. The institute focuses on providing high-quality education and research in the field of petroleum, hydrocarbons, and energy, as well as research, aims mainly in the areas of non-conventional hydrocarbons, Liquefied Natural Gas, biofuels, and renewables. 


  • Authorities of Institute— According to section 14 of the Act he following shall be the authorities of the institute, namely:—

 (a) The General Council; 

(b) The Board of Governors; 

(c) The Senate; and 

(d) Such other authorities may be declared by the Statutes to be the authorities of the institute.

  • Appointment and Responsibility of Director— the Central Government shall appoint the Director in accordance with Section 20 of the Act and the Director shall be the principal academic and executive officer of the institute and shall be responsible for the proper administration and academic performance of the institute and teaching and sustaining the discipline of the institute.
  • Funding According to Section 24 of the Act, the institute shall maintain a fund to which all sums of money provided by the Central Government, all fees and other charges, all money received by the institute by way of grants, gifts, donations, benefactions, bequests or transfer will be credited. The cabinet has approved 655.46 crores as a capital expenditure from the year 2016-2017 to the year 2022-2033 and 400 crores as an endowment fund.
  • Accounts of the Institute: The Institute shall maintain proper accounts and the accounts of the institute shall be audited by the Comptroller and Auditor-General of India (CAG). 
  • Dispute Resolution Mechanism— According to Section 37 of the Act any dispute arising out of a contract between the institute and any of its employees shall, at the request of the employee concerned or the instance of the institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the institute, one member nominated by the employee. An umpire appointed by the Visitor (President of India) and the decision of the Tribunal of Arbitration shall be final.

In case of any differences between the institute and the central government, the decision of the central government will be considered final.


This institute is essential not only for the development of the petroleum sector but to have alternative sources of fuels and energy. India is already suffering a shortage of petrol as we import 70% of our petrol products, thereby causing huge outflow in foreign exchange and Air pollution level in the country is at its worse.

 This institute might be the major pillar for achieving global leadership in terms of technology and innovation in the field of energy. This institute promised to give out world-class technical human resources.

We have a very talented young population, giving the right environment to them they can achieve a lot. But the challenge is to give this environment and ecosystem to them. Research in this field of petroleum and other energy is full of challenges and to meet that, technology and infrastructure need to be upgraded.

India is emerging as the fastest growing economy, and as the economy grows, energy demand will grow. So this Bill passed by the parliament is a great step towards achieving the demands of India and making India self-sufficient in the areas of energy and power.