New Delhi: The Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023, has been successfully passed in the Rajya Sabha, marking a significant step towards greater transparency in allocating minerals found in the country's offshore basins. The bill introduces a provision to grant production leases only through auctions, with a reserved quota for government entities and public sector units (PSUs).
This landmark bill opens up the country's vast mineral-bearing offshore areas, serving India's strategic interests and strengthening its control over territorial waters, which have been under constant threat of intrusion from neighboring countries.
The primary objective of the bill is to provide fixed 50-year production leases for offshore minerals, with the government emphasizing auctions as the preferred method to award such leases.
Presenting the bill in the Rajya Sabha, Coal and Mines Minister, Pralhad Joshi, highlighted that the amendments would ensure a more transparent allocation of these critical mineral resources, making sure that the allocation process takes place through a transparent auction mechanism. Moreover, certain critical and sensitive minerals, including atomic minerals, would be exclusively allocated to government entities or PSUs.
To secure funds for exploration, disaster management, and research related to offshore mining, as well as for mitigating adverse impacts, the bill includes a provision for establishing a non-lapsable Offshore Areas Mineral Trust. This trust will maintain a fund under the Public Account of India, which will be funded through an additional levy.
The amendment introduces a new composite licensing regime that grants explorers the right to develop and mine the mineral under a single license.
According to estimates from the Geological Survey of India (GSI), India is home to 79 million tonnes of heavy minerals. With this legislation in place, private firms stand to benefit from the enhanced opportunities in offshore mineral exploration and production.
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