To ensure availability of funds for exploration, mitigation of adverse impact of offshore mining, disaster relief, research, interest and benefit of the persons affected by exploration or production operations, a provision has been made for setting up of a non-lapsable Offshore Areas Mineral Trust
The Rajya Sabha passed today the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 which seeks to make amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002 (‘OAMDR Act’). The Bill was passed by Lok Sabha on 01.08.2023. The Bill will now be sent to the President of India for assent.
The proposed amendment in the Act will bring major reform by introducing auction as the method of allocation of operating rights in the offshore areas.
The OAMDR Act, 2002 came into force in 2010. However, no mining activity has been undertaken in the offshore areas till date. Hence, the Central Government has proposed the present Amendment Bill to bring several reforms in the offshore mining sector.
The OAMDR Act in its current form contains scope for discretion and does not provide for fair and transparent allocation of operating rights in the offshore areas. The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) was amended in January 2015 to provide for allocation of mineral concessions in onshore areas through auction. Since its implementation, 286 mineral blocks have been auctioned for grant of mining lease or composite licence. The transparent process has also generated additional revenue source to the State Governments in terms of auction premium. Introduction of auction regime through the present amendment in the OAMDR Act is expected to provide necessary impetus to the sector.
India has a unique maritime position. India’s Exclusive Economic Zone (EEZ) of over two million square kilometers holds significant recoverable resources. GSI has delineate the resources of the following minerals in the offshore areas:
As India aims to become a high-growth economy, it needs to harness its maritime resources to its optimal capacity. In order to harness the full potential of these maritime resources, it is imperative to encourage the participation of the public and private sector. The private sector will bring necessary expertise and technology to explore and mine the mineral resources present in the EEZ.
The salient features of the Amendment Bill are as under: