Rajya Sabha passes offshore mineral areas bill; private firms to benefit
New Delhi: The Rajya Sabha on Thursday passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023, paving the way for enhanced transparency in the allocation of minerals seated in country’s offshore basins, with a provision for granting production lease only through auction and keeping a reservation for government entities and public sector units (PSUs). In a first, the Bill opens up country’s vast mineral-bearing offshore areas.
Extraction of minerals from these areas will serve India’s strategic interests and give it a stronger hold on its territorial waters that otherwise also sees constant threat of ingression by neighbouring countries. The Bill seeks to provide a fixed 50-year production lease for offshore minerals.
As part of the Bill, the government aims to introduce auctions as the route to award production leases for offshore minerals. The Bill to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002, was passed by the Lok Sabha on Tuesday.
Presenting the Bill in Rajya Sabha, coal and mines minister Pralhad Joshi said that the amendments would ensure more transparency in allocation of these critical mineral resource such allocation will only be done through a transparent auction mechanism. Moreover, certain critical and sensitive minerals including atomic minerals would be allocated only to government entities or PSUs so far, the minister said.
To ensure the availability of funds for exploration, mitigation of adverse impact of offshore mining, disaster management and research, a provision has been made in the Bill for setting up a non-lapsable Offshore Areas Mineral Trust which will maintain a fund under the Public Account of India. This will be made up of an
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