Why in the News?

The Offshore Areas Minerals (Development and Regulation) Amendment Bill, 2023, has been successfully passed by the Lok Sabha.

The Offshore Areas Minerals (Development and Regulation) Amendment Bill, 2023:

It seeks to amend the existing Offshore Areas Mineral (Development and Regulation) Act, 2002, to regulate mining activities in India's maritime zones.

The key highlights of the Bill include:

• Reservation of Offshore Areas: The government is empowered to reserve offshore areas not under any operating rights.
• Composite Licence and Production Lease: The administering authority can grant composite licenses or production leases to the government or a government company.
• Fixed Production Lease Period: The provision for renewal of production leases is removed, and a fixed period of fifty years, akin to the Mines and Minerals (Development and Regulation) Act 1957, is introduced.
• Auction-Based Allocation: Private sector entities can acquire production leases through auction by competitive bidding.
• Operating Rights for Government Entities: Operating rights without competitive bidding can be granted to government or government companies or corporations in mineral-bearing areas reserved by the central government.
• Atomic Minerals: For atomic minerals, exploration licenses or production leases can only be granted to the government or government corporations.
• Production Commencement Timeline: A four-year timeline for production commencement and dispatch after the execution of composite licenses or production leases is introduced, with a two-year timeline (extendable by one year) for re-commencement of production and dispatch after discontinuation.
• Framing Rules for Conservation and Environment: The central government is enabled to establish rules for mineral conservation and systematic development in offshore areas, along with measures to protect the environment and control pollution resulting from exploration or production operations.