The government is all set to table the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023, in the Lok Sabha on Thursday. The Bill, which brings amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002, seeks to allow auction of minerals mined offshore. Union Minister of Mines and Coal Pralhad Joshi will introduce the bill on Thursday.

The Ministry of Mines had prepared a draft of the amendments proposed in the Offshore Areas Mineral (Development and Regulation) Act, 2002 and shared a brief note on the proposed amendments on February 9, 2023. The ministry had then sought comments and suggestions from the general public, state government and UTs, stakeholders and others on the same.

The draft said there is a need to amend the OAMDR Act "for providing a transparent, auction-based regime for allocation of mineral resources in offshore areas, to unshackle the area from pending litigations and creation of a fund to promote exploration in offshore areas".

Here's a look at what the Bill is about

1. One of the objectives behind bringing the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 is to mine rocks under the sea. Earlier reports cited sources as saying that under the original Act, not "even a single rock could be not mined out from the sea-bed mainly due to pending litigations".

Union Mines Secretary Vivek Bharadwaj had in May 2023 said that the 2002 Act has resulted in no actual mining due to litigations.

"The objective behind the move is to use the national wealth in the sea for the use of people of the country," sources had told PTI earlier this year.

2. The original Offshore Areas Mineral (Development and Regulation) Act, which was enacted in 2002, does not allow auction of minerals. Therefore, the amendment seeks to provide an auction of minerals mined offshore.

3. The Bill is expected to facilitate private sector participation in the mining of non-atomic minerals in India’s territorial waters and continental shelf, the Hindu reported earlier.

Meanwhile, the draft said a "provision has been made to grant mineral concession without competitive bidding to Government companies or corporations on payment of such amount as may be prescribed by the Central Government in the mineral bearing areas reserved by the Central Government."

Besides, a Mint report said government entities will likely maintain a significant presence in offshore areas. However, private companies might be encouraged to contribute "cutting-edge technologies for the execution of complex mining operations". It is expected that there would be at least one government company in each area earmarked for mining.

4. The amendment bill also aims to improve transparency in the allocation of mineral resources, with a provision for granting production leases only through auction, Mint reported.

5. The bill also provides for the grant of exploration licence or production lease only to a government company in case the quality minerals in that particular area is equal to or above the threshold value - "which will be decided by the Centre when rules governing the changes in the Act are finalised," a source said.

6. The Bill further proposes that the area under a production lease shall comprise of contiguous standard blocks and shall not exceed an area of 15 minutes latitude by 15 minutes longitude.

7. A limit on area has also been introduced. "A person cannot acquire more than 45 minutes latitude by 45 minutes longitude in respect of any mineral or prescribed group of associated mineral under one or more exploration licence, composite licence and production lease (all taken together)."

8. To promote ease of doing business, a provision has been made for easy transfer of exploration licence, composite licence or production lease.

9. The central government has been granted powers to revise the order made by Administering Authority, issue directions and call for information from the Administering Authority, in the public interest.

10. To remove discretion in the grant of renewals, the provisions for renewal of production leases have been removed and the period of production lease has been increased to 50 years.

What India gains from this Bill

The draft Bill mentions that in order to harness the full potential of maritime resources, it is imperative for India "to encourage the participation of the public-private sector".

"As India aims to become a high-growth economy, it needs to harness its maritime resources to its optimal capacity... The private sector will bring the necessary expertise and technology to explore and mine the mineral resources present in the EEZ," the draft said.

The amendments will help India in realising the natural wealth which lies within the country along its coast.