Offshore Areas Mineral (Development and Regulation) Amendment Bill 2023

Source: PIB
GS II: Governance; GS I: Natural Resources

Overview

1. About the Bill
2. Key Provisions
3. India’s Exclusive Economic Zone (EEZ)

Why in News?

Recently, the Parliament passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill 2023.

About the Bill

• The Offshore Areas Mineral (Development and Regulation) Amendment Bill 2023 was introduced in Lok Sabha on July

  

  27, 2023.

• The Bill amends the Offshore Areas Mineral (Development and Regulation) Act, 2002. The Act regulates mining in maritime zones of India.
• The Act categorises offshore mining-related activities into
  1. reconnaissance, which involves a preliminary survey to locate mineral resources
  2. Exploration, which includes exploring, proving, or locating mineral deposits
  3. Production is the commercial activity of the extraction of minerals.

Key Provisions of Offshore Areas Mineral (Development and Regulation) Amendment Bill 2023

• License
  • A composite license is introduced by the bill to give rights for both production and exploration.
  • The licensee will have three years to finish exploration as per the terms of the composite license.
  • Upon request of the licensee, this may be extended for an additional two years.
  • The licensee will be given one or more production licenses for the investigated area if mineral deposits have been confirmed.
  • Types are 
    1. Reconnaissance permit for reconnaissance
    2. Exploration license for exploration
    3. Production lease for undertaking mining.
• Area Coverage 
  • The largest exploration region that may be conducted under a single composite license is 30 minutes of latitude by 30 minutes of longitude.
  • A single composite license may cover a maximum region of 15 minutes latitude by 15 minutes longitude for production.
• Validity of Concession
  • A production lease may be awarded under the Act for up to 30 years.
  • Up to 20 further renewals are permitted.
  • A production lease and a production lease under a composite license will both have a 50-year term under the Bill’s provisions.
• Auction
  • A production lease and a composite license to private firms must be competitively bid for.
  • Applications for production leases made prior to the effective date of the Bill’s provisions are invalid.
  • An exploration license issued before the effective date of the Bill’s provisions will not be qualified to purchase a production lease on the explored area.
• Reserved Area Mining
  • The act allows the government to reserve offshore areas that are not held under any operating right.
  • Joint ventures of government companies will also be eligible, subject to certain conditions
    • Partners must be selected through a competitive process
    • Government company owns at least 74% of the paid-up share capital.
• Atomic minerals
  • The Bill further states that only the government or government-affiliated firms would be awarded exploration, production, and composite licenses for atomic minerals.
  • The Mines and Minerals (Development and Regulation) Act of 1957 defines atomic minerals.
• Fine for Offenses
  • Bill raises penalties for a number of infractions.
  • For instance, violating the Act’s prohibition on engaging in any activity without a permit or license might result in a five-year jail sentence, a fine of up to Rs 50,000, or both.
  • According to the Bill, the penalties for this infraction will range from Rs 5 lakh to Rs 10 lakh.

India’s Exclusive Economic Zone (EEZ)

Two million square kilometers holds significant recoverable resources. GSI has delineate the resources of the following minerals in the offshore areas:

• 1,53,996 million tons of lime mud within the EEZ off Gujarat and Maharashtra coasts.
• 745 million tons of construction-grade sand off Kerala coast.
• 79 million tons of heavy mineral placers in the inner-shelf and mid-shelf off Odisha, Andhra Pradesh, Kerala, Tamil Nadu and Maharashtra.
• Phosphorite in the Eastern and Western continental margins.
• Polymetallic Ferromanganese (Fe-Mn) nodules and crusts in Andaman Sea and Lakshadweep Sea.

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