Mint Explainer: How the mining legislations open up assets for private sector

livemint.com:

Mint delves into these two transformative bills that will increase the scale and scope of mineral exploration and production. 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 brought the amendment Bill to bring several reforms in the offshore mining sector. The proposed amendment in the Act will bring major reform by introducing auction as the method of allocation of operating rights in offshore areas. The offshore areas will be granted to the public and private sector for a period of 50 years.

The rights to mine atomic minerals will, however, go to companies in the public sector. An Offshore Areas Mineral Trust has also been created 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, etc. This will be funded by an additional levy on the production of minerals, not exceeding one third of the royalty.

The exact rate of additional levy will be prescribed by the Central Government. Also, the proceeds of the mining in offshore areas will go to the Central government. The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 for making amendments to the Mines and Minerals (Development and Regulation) Act, 1957.