The Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 |The LexSphere Library

SECTION Section 1

Untitled Section

•1

•THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND

•REGULATION) AMENDMENT BILL, 2023

•A

•BILL

•to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002.

•BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as

•follows:—

SECTION Section 10

Untitled Section

8.In section 10 of the principal Act,—

(a)in sub-section (1),—

(i)for the brackets, figure and words "(1) Within six months", the words

•"Within six months" shall be substituted;

•(ii) for the words "reconnaissance permit, exploration licence or production

•lease", the words "reconnaissance permit, or exploration licence, or composite

•licence, or production lease" shall be substituted;

(b)sub-sections (2) and (3) shall be omitted.

SECTION Section 11

Untitled Section

9.Section 11 of the principal Act shall be omitted.

SECTION Section 12

Untitled Section

10.For sections 12 and 13 of the principal Act, the following sections shall be

•substituted, namely:—

•"12. (1) The administering authority may, in respect of an offshore area where

•the existence of mineral resources has not been adequately established for grant of a

•production lease as required by the second proviso to section 6, after inviting

•applications in this behalf, select any person for grant of a composite licence, who—

(a)fulfils the eligibility conditions as specified in this Act and such

•conditions as may be prescribed; and

(b)is selected through auction by method of competitive bidding, including

•e-auction, conducted on the basis of such terms and conditions, manner and

•bidding parameters, as may be prescribed.

(2)The Central Government shall grant the composite licence to the person

•selected in accordance with the procedure laid down in sub-section (1).

•Amendment

•of section 9.

•Amendment

•of section 10.

•Omission of

SECTION Section 13

Untitled Section

•section 11.

•Substitution of

•new sections

•for sections

•12 and 13.

•Grant of

•composite

licence.

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(3)The licensee shall complete the exploration operations satisfactorily, as

•specified in the notice inviting applications, within a period of three years from the

•date of grant of the composite licence:

•Provided that the administering authority may, on an application made by the

•licensee three months before the lapse of the said period, for reasons to be recorded in

•writing and subject to such conditions as may be prescribed, grant an extension for a

•period of two years to the licensee for satisfactory completion of the exploration

•operations:

•Provided further that no further extension shall be granted upon expiry of the

•extended period, if any, granted under the first proviso.

(4)The area granted under a composite licence shall comprise of contiguous

•standard blocks, which in aggregate do not exceed an area of thirty minutes latitude by

•thirty minutes longitude.

(5)Every licensee shall, on being granted a composite licence, commence and

•carry out exploration operation subject to such terms, milestones and relinquishment

•requirements, as may be prescribed.

(6)A licensee, who has adequately established the existence of mineral resources

•in an offshore area held under the composite licence, or part thereof, as required by the

•second proviso to section 6, shall, within the period specified or extended under

•sub-section (3), subject to such terms and conditions, and on making an application to

•the administering authority in such form, as may be prescribed, be granted one or more

•production leases:

•Provided that such licensee—

(a)is not in breach of the terms and conditions of his composite licence;

(b)continues to be eligible for grant of a production lease in accordance

•with section 6; and

(c)has applied for grant of production lease within six months of completion

•of his exploration operations:

•Provided further that the total area of such production lease or production

•leases, granted in pursuance of a single composite licence, shall not exceed fifteen

•minutes latitude by fifteen minutes longitude.

(7)The administering authority shall, on receipt of an application under

•sub-section (6), and on being satisfied that the licensee meets the requirements under

•the provisions of this Act and the rules made thereunder, recommend to the Central

•Government for grant of production lease to such licensee.

(8)The Central Government shall, on receipt of a recommendation under

•sub-section (7) from the administering authority, grant production lease to the licensee

•in accordance with such procedure as may be prescribed.

(9)Every production lease granted in pursuance of a composite licence shall be

•for a period of fifty years.

(10)All rights and interests held under a composite licence in the parts of an

•offshore area, in respect of which no production lease is granted, shall cease to exist

•upon expiry of the composite licence.

(11)The provisions of this section shall not apply to—

(a)the areas covered under section 8; and

(b)the minerals specified in Part B of the First Schedule to the Mines and

•Minerals (Development and Regulation) Act, 1957, where the grade of atomic

•67 of 1957.

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•mineral is equal to or greater than such threshold value, as the Central Government

•may, by notification in the Official Gazette, specify.

SECTION Section 14

Untitled Section

13.(1) The administering authority may, in respect of an offshore area where the

•existence of mineral resources has been adequately established for grant of production

•lease as required by the second proviso to section 6, after inviting applications in this

•behalf, select any person for grant of a production lease, who—

(a)fulfils the eligibility conditions as specified in this Act and such

•conditions as may be prescribed; and

(b)is selected through auction by method of competitive bidding, including

•e-auction, conducted on the basis of such terms and conditions, manner and

•bidding parameters, as may be prescribed.

(2)The Central Government shall grant the production lease to the applicant

•selected in accordance with the procedure laid down under sub-section (1).

(3)Every production lease under this section shall be granted for a period of

•fifty years.

(4)The area under a production lease shall comprise of contiguous standard

•blocks and shall not exceed an area of fifteen minutes latitude by fifteen minutes

longitude.

(5)Upon grant of a production lease, the lessee shall commence and carry out

•production operation in such manner and subject to such terms and conditions, as

•may be prescribed.

(6)The provisions of this section shall not apply to—

(a)the areas covered under section 8; and

(b)the minerals specified in Part B of the First Schedule to the Mines and

•Minerals (Development and Regulation) Act, 1957, where the grade of atomic

•mineral is equal to or greater than such threshold value, as the Central Government

•may, by notification in the Official Gazette, specify.".

SECTION Section 15

Untitled Section

11.After section 13 of the principal Act, the following sections shall be inserted, namely:—

•"13A. (1) Notwithstanding anything contained in section 12 or section 13, no

•person shall acquire in respect of any mineral or a group of associated minerals, as may

•be prescribed, one or more exploration licence, composite licence and production

•lease, all taken together and covering a total area of more than forty-five minutes

•latitude by forty-five minutes longitude:

•Provided that if the Central Government is of the opinion that in the interest of

•the development of any mineral or industry, it is necessary so to do, it may, for the

•reasons to be recorded in writing, increase or decrease the said area limit in respect of

•any mineral or any specified category of deposits of such mineral or such group of

•associated minerals.

(2)For the purposes of this section, a person acquiring by, or in the name of,

•another person an operating right which is intended for himself, shall be deemed to be

•acquiring it himself.

(3)For the purposes of determining the total area referred to in sub-section (1),

•the area held under an operating right by a person as a member of a co-operative

•society, or a company, or a corporation, or a Hindu undivided family, or a partner of a

•firm, shall be deducted from the area referred to in sub-section (1) so that the sum total

•of the area held by such person, under an operating right, whether as such member or

•Grant of

•production

lease.

•Insertion of

•new sections

•13A, 13B and

13C.

•Maximum

•area for which

•operating

•rights may be

granted.

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•partner, or individually, may not, in any case, exceed the total area specified in

•sub-section (1).

13B.(1) A composite licence or a production lease granted under section 8, or

•through competitive bidding under section 12 or section 13, may be transferred by the

•relevant licensee or lessee, as the case may be, in such manner and subject to such

•conditions, as may be prescribed, to any person eligible for grant of such licence or

•lease, under the provisions of this Act:

•Provided that no such transfer of a composite licence or a production lease shall

•be made in contravention of any conditions, subject to which such licence or lease

•was granted.

Explanation.—For the purposes of this sub-section, it is clarified that transfer

•may include one or more production leases, granted pursuant to one composite licence.

(2)The provisions of this Act, the rules made thereunder and the terms and

•conditions of a composite licence or a production lease, shall be binding upon the

•person to whom such licence or lease, as the case may be, is transferred under

•sub-section (1).

13C.(1) On and from the date of commencement of the Offshore Areas Mineral

•(Development and Regulation) Amendment Act, 2023, auction being the sole method

•of selection for grant of composite licence or production lease under sections 12

•and 13,—

(a)all applications received prior to the said date of commencement for

•grant of composite licence or production lease shall become ineligible;

(b)any exploration licence granted prior to the said date of commencement

•shall become ineligible for grant of production lease over the offshore area

•covered by such exploration licence.

(2)The provisions of sub-section ( 1) shall be applicable notwithstanding

•anything contained in this Act, or any order or direction to the contrary, passed by any

•court or authority, prior to the commencement of the Offshore Areas Mineral

•(Development and Regulation) Amendment Act, 2023.".

SECTION Section 16

Untitled Section

12.In section 14 of the principal Act, after clause ( a), the following clause shall be

•inserted, namely:—

•"(aa) composite licence — one year;".

SECTION Section 17

Untitled Section

13.In section 16 of the principal Act, in sub-section (1), for the words "consumed by

•him from the area covered under the production", the words "consumed from the area

•covered under his production" shall be substituted.

SECTION Section 18

Untitled Section

14.After section 16 of the principal Act, the following section shall be inserted,

•namely:—

•"16A. (1) The Central Government shall, by notification in the Official Gazette,

•establish a Trust, as a non-profit autonomous body, to be called the Offshore Areas

•Mineral Trust.

(2)The object of the Offshore Areas Mineral Trust shall be to use the funds

•accrued to it for the following purposes, namely:—

(a)research, administration, studies and related expenditure with respect

•to offshore areas and mitigation of any adverse impact that may be caused to the

•ecology in the offshore area, due to operations undertaken; or

(b)providing relief upon the occurrence of any disaster in the offshore

•area; or

•Transfer of

•composite

•licence or

•production

lease.

•Certain

•applications

•and

•exploration

•licence to

•become

ineligible.

•Amendment

•of section 14.

•Amendment

•of section 16.

•Insertion of

•new section

16A.

•Establishment

•of Offshore

•Areas Mineral

Trust.

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(c)the purposes of exploration in the offshore area; or

(d)for the interest and benefit of persons affected by exploration or

•production operations undertaken; or

(e)such other purposes, as may be prescribed.

(3)The composition and functions of the Offshore Areas Mineral Trust shall be

•such as may be prescribed.

(4)The funds accrued to the Offshore Areas Mineral Trust shall be non-lapsable

•under the public account of India and be administered in such manner as may be

prescribed.

(5)A lessee shall pay, in addition to the royalty, to the Offshore Areas Mineral

•Trust, an amount which is equivalent to such percentage of the royalty paid in terms of

•the First Schedule, not exceeding one-third of such royalty, in such manner as may be

prescribed.

(6)The entities specified and notified under sub-section (1) of section 5 shall be

•eligible for funding under the Offshore Areas Mineral Trust, subject to such conditions

•as may be specified by the Central Government.".

SECTION Section 19

Untitled Section

15.In section 17 of the principal Act, for the words "consumed by him from the area",

•the words "consumed from the area" shall be substituted.

SECTION Section 2

Untitled Section

1.(1) This Act may be called the Offshore Areas Mineral (Development and Regulation)

•Amendment Act, 2023.

(2)It shall come into force on such date as the Central Government may, by notification

•in the Official Gazette, appoint.

SECTION Section 20

Untitled Section

16.For section 18 of the principal Act, the following section shall be substituted,

•namely:—

•"18. Every lessee shall, in addition to other payments required under this Act,

•pay to the Central Government in advance, the amount to be paid to the International

•Seabed Authority in respect of the offshore area granted under his production lease

•falling in such part of the continental shelf extending beyond two hundred nautical

•miles, from the baseline from which the breadth of the territorial sea is measured,

•towards fulfilment of the obligation of the Government of India under Article 82 of the

•United Nations Convention on the Law of the Sea, 1982.".

SECTION Section 21

Untitled Section

17.After section 19 of the principal Act, the following section shall be inserted, namely:—

•"19A. The Central Government shall take necessary steps, as may be prescribed,

•for the conservation and systematic development of minerals in the offshore areas and

•for the protection of environment by preventing or controlling any pollution which

•may be caused by exploration or production operations.".

SECTION Section 22

Untitled Section

18.In section 23 of the principal Act,—

(a)in sub-section (1),—

(i)for clauses ( a) and ( b), the following clauses shall be substituted,

•namely:—

•"(a) Whoever undertakes any reconnaissance operation, or

•exploration operation, or production operation in an offshore area without

•a reconnaissance permit, or a composite licence, or an exploration licence,

•or a production lease, as the case may be, shall be punishable with

•imprisonment for a term which may extend to five years, or with fine of five

•lakh rupees, which may extend to ten lakh rupees, or with both.

(b)Any permittee or licensee or lessee, who fails to furnish the

•required data, or information, or document under sub-section ( 2) of

•Amendment

•of section 17.

•Substitution of

•new section

•for section 18.

•Contribution

•towards

•International

•Seabed

Authority.

•Insertion of

•new section

19A.

•Duty of

•Central

•Government

•on mineral

•conservation

•and

development.

•Amendment

•of section 23.

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SECTION Section 23

Untitled Section

•section 5 in the manner provided therein, shall be punishable

•with imprisonment which may extend to three years, or with fine of

•five lakh rupees, which may extend to ten lakh rupees, or with both.

Explanation.—For the purposes of clauses (a) and (b), the amount of fine

•provided shall be in respect of each standard block of such part of the offshore

•area where such reconnaissance operation, or exploration operation, or production

•operation is undertaken.";

•(ii) in clause (d),—

(A)for the word "punished", the word "punishable" shall be

•substituted;

(B)for the words "with fine which may extend to fifty lakh rupees",

•the words "with fine of twenty-five lakh rupees, which may extend to fifty

•lakh rupees" shall be substituted;

(b)in sub-section (2), in the long line, for the words "punished with imprisonment

•for a term which may extend to five years, or with fine which may extend to fifty

•thousand rupees", the words "punishable with imprisonment which may extend to five

•years, or with fine of two lakh rupees, which may extend to five lakh rupees" shall be

•substituted;

(c)after sub-section (2), the following sub-section shall be inserted, namely:—

•"(2A) Whoever, having been convicted of an offence under sub-section (1)

•or sub-section ( 2), is again convicted of an offence under that sub-section,

•shall, in addition to the punishment provided therefor, be punishable with

•additional fine which may extend to one lakh rupees for each day during which

•he continues to commit that offence.";

(d)in sub-section (3),—

(i)the words "or the rules made thereunder" shall be omitted;

•(ii) for the word "punished", the word "punishable" shall be substituted;

•(iii) for the words "with fine which may extend to one crore rupees", the

•words "with fine of fifty lakh rupees, which may extend to one crore rupees"

•shall be substituted;

(e)after sub-section (3), the following shall be inserted, namely:—

•"(4) Any rule made under any provision of this Act may provide that any

•contravention thereof shall be punishable with imprisonment for a term which

•may extend to five years or with fine of fifty lakh rupees, which may extend to

•one crore rupees, or with both, and in the case of a continuing contravention,

•with additional fine which may extend to five lakh rupees for every day during

•which such contravention continues after conviction for the first such

contravention.".

SECTION Section 24

Untitled Section

19.In section 28 of the principal Act, in sub-section (1), in clause (b), for the words

•"one lakh rupees and which may extend to ten lakh rupees", the words "five lakh rupees and

•which may extend to fifty lakh rupees" shall be substituted.

SECTION Section 25

Untitled Section

20.After section 34 of the principal Act, the following shall be inserted, namely:—

•"34A. The Central Government may, of its own motion and for reasons to be

•recorded in writing, and in accordance with such terms as may be prescribed, revise

•any order made by the administering authority or any officer under this Act or the rules

•made thereunder.

•Amendment

•of section 28.

•Insertion of

•new sections

•34A, 34B and

34C.

•Power of

•revision by

•Central

Government.

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34B.Notwithstanding anything contained in this Act, the Central Government

•may give such directions to the administering authority, as it may deem necessary, in

•public interest, strategic interest of the country, conservation and development of

•mineral, or to carry out the provisions of this Act or the rules made thereunder.

34C.The Central Government may, for the purposes of this Act, require —

(a)the administering authority; or

(b)a permittee or a licensee or a lessee; or

(c)any person whom it has reason to believe to be connected with any

•activity in respect of minerals in the offshore area,

•to furnish such information as it may deem necessary for, or relevant to, any enquiry or

•proceeding, under this Act.".

SECTION Section 26

Untitled Section

21.In section 35 of the principal Act, in sub-section (2),—

(i)after clause (a), the following clause shall be inserted, namely:—

•"(aa) such other authority to whom, all exploration and operational data,

•reports, samples and other information in respect of or collected pursuant to an

•operation, is to be furnished by the lessee, licensee or permittee the manner and

•the period within which, they are to be furnished, under clause ( a) of

•sub-section (2) of section 5;

•(ab) the terms and conditions subject to which the data, reports, samples

•or information is to be disseminated pursuant to a sale or otherwise under

SECTION Section 27

Untitled Section

•clause (b) of sub-section (2) of section 5;";

•(ii) for clause (c), the following clauses shall be substituted, namely:—

•"(c) the conditions and manner for regulating the grant of mineral

•concessions in respect of minerals specified in Part B of the First Schedule to the

•Mines and Minerals (Development and Regulation) Act, 1957 under the first

•proviso to section 6;

•(ca) the parameters for adequately establishing existence of mineral

•resources under the second proviso to section 6;";

•(iii) clauses (d) to (j) shall be omitted;

•(iv) after clause (j), the following clauses shall be inserted, namely:—

•"(ja) the terms and conditions for grant of a composite licence or a

•production lease to a Government company or corporation under section 8;

•(jb) the eligibility conditions to be fulfilled, the terms and conditions for

•conducting competitive bidding, the manner and bidding parameters for grant of

•a composite licence under sub-section (1) of section 12;

•(jc) the conditions subject to which extension is to be granted to the

•licensee for completion of the exploration operations under the first proviso to

•sub-section (3) of section 12;

•(jd) terms, milestone and relinquishment requirements for commencing

•and carrying out exploration operation under sub-section (5) of section 12;

•(je) the form of application to be made to the administering authority for

•grant of production lease under sub-section ( 6) and the procedure therefor

•under sub-section (8) of section 12;

•(jf) eligibility conditions to be fulfilled, the terms and conditions for

•conducting competitive bidding, the manner and bidding parameters for grant of

•a production lease under sub-section (1) of section 13;

•Amendment

•of section 35.

•Power of

•Central

•Government

•to issue

directions.

•Power of

•Central

•Government

•to call for

information.

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•(jg) the terms and conditions subject to which the production operations

•shall be commenced and carried out under sub-section (5) of section 13;

•(jh) the group of associated minerals to be specified under sub-section (1)

•of section 13A;

•(ji) the manner and the conditions for transfer of a composite licence or a

•production lease under section 13B;

•(jj) such other purposes for which the funds accrued to the Offshore Area

•Mineral Trust shall be used under sub-section (2) of section 16A;

•(jk) the composition and functions of the Offshore Area Mineral Trust

•under sub-section (3) of section 16A;

•(jl) the manner of administration of funds accrued to the Offshore Area

•Mineral Trust under sub-section (4) of section 16A;

•(jm) the manner of payment of amounts to the Offshore Area Mineral Trust

•under sub-section (5) of section 16A;";

(v)after clause (k), the following clause shall be inserted, namely:—

•"(ka) the steps necessary to be taken for conservation and systematic

•development of minerals in the offshore areas and for the protection of

•environment by preventing or controlling any pollution which may be caused

•by exploration or production operations under section 19A;";

•(vi) after clause (p), the following clause shall be inserted, namely:—

•"(pa) the measures to be taken for preventing illegal mining, transportation,

•and storage of minerals and for the purposes connected therewith;".

SECTION Section 28

Untitled Section

22.Section 36 of the principal Act shall be omitted.

SECTION Section 29

Untitled Section

23.In the Second Schedule to the principal Act, in the Table, for the entries in column (1)

•relating to size, the following shall be substituted, namely:—

•Size

•"Standard block of 1 minute longitude by 1 minute latitude.".

SECTION Section 3

Untitled Section

2.In the Offshore Areas Mineral (Development and Regulation) Act, 2002 (hereinafter

•referred to as the principal Act), in section 4,—

(i)in clause ( b), after the words, brackets and figures "Mines and Minerals

•(Development and Regulation) Act, 1957", the words "and the rules made thereunder"

•shall be inserted;

•Short title and

commencement.

•Amendment

•of section 4.

•17 of 2003.

•67 of 1957.

•AS INTRODUCED IN LOK SABHA

•Bill No. 102 of 2023

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•(ii) after clause (c), the following clauses shall be inserted, namely:—

•'(ca) "composite licence" means the exploration licence-cum-production

•lease, which is a two stage operating right granted for the purpose of undertaking

•exploration operation followed by production operation;

•(cb) "dispatch" means removal of minerals or mineral products from the

•area covered under the production lease and includes the consumption of

•minerals and mineral products within such area;';

•(iii) in clause (d), for the words and figures "under section 12", the words "for

•the purpose of undertaking exploration operation" shall be substituted;

•(iv) after clause (e), the following clause shall be inserted, namely:—

•'(ea) "Government company" shall have the meaning assigned to it in

SECTION Section 30

Untitled Section

24.(1) If any difficulty arises in giving effect to the provisions of this Act, the Central

•Government may, by order, published in the Official Gazette, make such provisions not

•inconsistent with the provisions of the principal Act, as appear to it to be necessary or

•expedient for removing the difficulty:

•Provided that no such order shall be made under this sub-section after the expiry of a

•period of two years from the commencement of this Act.

(2)Every order made under this section shall be laid, as soon as may be after it is made,

•before each House of Parliament.

•Omission of

SECTION Section 31

Untitled Section

•section 36.

•Amendment

•of Second

Schedule.

•Removal of

difficulties.

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•STATEMENT OF OBJECTS AND REASONS

•The Offshore Areas Mineral (Development and Regulation) Act, 2002 (the Act) was

•enacted to provide for development and regulation of mineral resources in the territorial

•waters, continental shelf, exclusive economic zone and other maritime zones of India and to

•provide for matters connected therewith or incidental thereto. The provisions of the Act

•came into force with effect from the 15th day of January, 2010.

SECTION Section 32

Untitled Section

2.India, despite having a unique maritime position with long coastline touching nine

•coastal States and four Union territories and two million square kilometres of exclusive

•economic zone, has not been able to tap its vast offshore mineral resources for its

•developmental needs. Previous efforts of allocation of offshore blocks did not bear desired

•results due to lack of legal framework for a fair and transparent mechanism to allocate the

•operating rights in the Act and stalemate caused due to pending litigations over the allocation

•of blocks.

SECTION Section 33

Untitled Section

3.In case of onshore mineral resources, auction was introduced as the method of

•allocation of mineral concession by amending the Mines and Minerals (Development and

•Regulation) Act, 1957, in 2015. Pursuant to the same, since 2015, hundreds of mineral blocks

•have been auctioned for grant of mining lease or composite licence under the Mines and

•Minerals (Development and Regulation) Act, 1957. The auction process has also generated

•additional source of revenue to the State Governments in terms of auction premium.

SECTION Section 34

Untitled Section

4.Similarly, there is an urgent need to introduce auction as the method of allocation of

•operating rights in the offshore areas to enable early allocation of operating rights through

•a transparent and non-discretionary process. Also, there is a need to adopt other features of

•the Mines and Minerals (Development and Regulation) Act, 1957, such as, establishment of

•trusts for mining affected persons and encouraging exploration, removing process of

•discretionary renewals and providing uniform lease period of fifty years, introduction of

•composite licence, providing for area limits, easy transfer of composite licence or production

•lease, etc.

SECTION Section 35

Untitled Section

5.Accordingly, it is proposed to introduce the Offshore Areas Mineral (Development

•and Regulation) Amendment Bill, 2023, in Parliament. The salient features of the said Bill,

•inter alia, are—

(i)to provide for grant of production lease to private sector only through auction

•by competitive bidding;

•(ii) to provide for grant of operating rights without competitive bidding to a

•Government or a Government company or a corporation in the mineral bearing areas

•reserved by the Central Government;

•(iii) to introduce composite licence, which is a two stage operating right granted

•for the purpose of undertaking exploration followed by production operation. Composite

•licence shall also be granted only through auction by competitive bidding to private

•sector;

•(iv) to provide that in case of atomic minerals, grant of exploration licence or

•production lease shall be made only to a Government or a Government company or a

•corporation;

(v)to remove the provision for renewal of production lease and provide a fixed

•period of fifty years for production lease similar to the provisions of the Mines and

•Minerals (Development and Regulation) Act, 1957;

•14

•(vi) to limit the area a person can acquire in respect of any mineral or a group of

•associated minerals, as may be specified by rules, under one or more operating rights

•all taken together;

•(vii) to establish an Offshore Areas Mineral Trust to maintain a non-lapsable

•fund under the public account of India to ensure availability of funds for exploration,

•mitigation of adverse impact of offshore mining, disaster relief, research, work for

•interest and benefit of the persons affected by exploration or production operations,

etc.;

•(viii) to remove the impasse in the sector, auction has been introduced as the

•only method of selection for grant of composite licence or production lease under

•sections 12 and 13 of the Act, and all applications received prior to the date of

•commencement of the proposed legislation shall become ineligible. Similarly, any holder

•of exploration licence granted pursuant to application received prior to the coming into

•the force of the proposed legislation shall also become ineligible for grant of production

•lease;

•(ix) to introduce timeline of four years (extendable by one year) for commencement

•of production and dispatch after the execution of production lease and timeline of two

•years (extendable by one year) for re-commencement of production and dispatch after

•discontinuation;

(x)to enable the Central Government to frame rules for the conservation and

•systematic development of minerals in offshore areas and for the protection of

•environment by preventing or controlling any pollution which may be caused by

•exploration or production operations;

•(xi) to provide for transfer of composite licence or production lease to promote

•ease of doing business; and

•(xii) to increase amount of fine for illegal mining and other offences.

SECTION Section 36

Untitled Section

6.The Bill seeks to achieve the above objectives.

•N

•EW DELHI; PRALHAD JOSHI.

•The 19th July, 2023.

•15

•FINANCIAL MEMORANDUM

•The Bill seeks to amend the Offshore Areas Mineral (Development and Regulation)

•Act, 2002 to enable exploration and mining of mineral resources in the offshore areas for the

•progress and development of the country. The Bill, if enacted, is not likely to involve any

•recurring or non-recurring expenditure. On the other hand, production of minerals from the

•blocks allocated in the offshore areas would result in accrual of revenue to the Central

•Government in terms of royalty, fixed rent and auction premium. Funds would also be generated

•from payments by the production lease holders to the Offshore Areas Mineral Trust for the

•purposes such as exploration, research and mitigation of adverse impact on ecology.

•MEMORANDUM REGARDING DELEGATED LEGISLATION

SECTION Section 37

Untitled Section

•Clause 14 of the Bill empowers the Central Government to establish, by notification in

•the Official Gazette, a Trust, as a non-profit autonomous body, to be called the Offshore

•Areas Mineral Trust.

SECTION Section 38

Untitled Section

2.Clause 21 of the Bill seeks to amend sub-section (2) of section 35 of the Offshore

•Areas Mineral (Development and Regulation) Act, 2002 to make rules to provide for—

(i)such other authority to whom, all exploration and operational data, reports,

•samples and other information in respect of or collected pursuant to an operation, is

•to be furnished by the lessee, licensee or permittee the manner and the period within

•which, they are to be furnished, under clause ( a) of sub-section ( 2) of section 5;

•(ii) the terms and conditions subject to which the data, reports, samples or information

•is to be disseminated pursuant to a sale or otherwise under clause ( b) of sub-section

(2)of section 5; ( iii) the conditions and manner for regulating the grant of mineral

•concessions in respect of minerals specified in Part B of the First Schedule to the

•Mines and Minerals (Development and Regulation) Act, 1957 under the first proviso

•to section 6; ( iv) the parameters for adequately establishing existence of mineral

•resources under the second proviso to section 6; ( v) the terms and conditions for

•grant of a composite licence or a production lease to a Government company or

•corporation under section 8; ( vi) the eligibility conditions to be fulfilled, the terms

•and conditions for conducting competitive bidding, the manner and bidding parameters

•for grant of a composite licence under sub-section (1) of section 12; (vii) the conditions

•subject to which extension is to be granted to the licensee for completion of the

•exploration operations under the first proviso to sub-section ( 3) of section 12;

•(viii) terms, milestone and relinquishment requirements for commencing and carrying

•out exploration operation under sub-section ( 5) of section 12; ( ix) the form of

•application to be made to the administering authority for grant of production lease

•under sub-section ( 6) and the procedure therefor under sub-section ( 8), of

SECTION Section 39

Untitled Section

•section 12; ( x) eligibility conditions to be fulfilled, the terms and conditions for

•conducting competitive bidding, the manner and bidding parameters for grant of a

•production lease under sub-section ( 1) of section 13; ( xi) the terms and conditions

•subject to which the production operations shall be commenced and carried out

•under sub-section ( 5) of section 13; ( xii) the group of associated minerals to be

•specified under sub-section (1) of section 13A; (xiii) the manner and the conditions

•for transfer of a composite licence or a production lease under section 13B; (xiv) such

•other purposes for which the funds accrued to the Offshore Area Mineral Trust shall

•be used under sub-section (2) of section 16A; (xv) the composition and functions of

•the Offshore Area Mineral Trust under sub-section ( 3) of section 16A; ( xvi) the

•manner of administration of funds accrued to the Offshore Area Mineral Trust under

•sub-section ( 4) of section 16A; ( xvii) the manner of payment of amounts to the

•Offshore Area Mineral Trust under sub-section ( 5) of section 16A; ( xviii) the steps

•necessary to be taken for conservation and systematic development of minerals in

•the offshore areas and for the protection of environment by preventing or controlling

•any pollution which may be caused by exploration or production operations under

SECTION Section 4

Untitled Section

•clause (45) of section 2 of the Companies Act, 2013;';

(v)in clause (i), for the words "the production lease", the words "a production

•lease" shall be substituted;

•(vi) in clause (j), for the words "the exploration licence is granted", the words "a

•composite licence, or an exploration licence, is granted" shall be substituted;

•(vii) in clause (k), for the words "an exploration licence or production lease", the

•words "a composite licence, or an exploration licence, or a production lease" shall be

•substituted;

•(viii) in clause (o), for the words "an exploration licence, or a production lease",

•the words "a composite licence, or an exploration licence, or a production lease" shall

•be substituted;

•(ix) after clause (r), the following clause shall be inserted, namely:—

•'(ra) "production", with its grammatical variation and cognate expressions,

•means the winning of mineral within the area covered under a production lease

•for the purpose of processing or dispatch;';

(x)in clause ( t), for the words and figures "under section 13", the words and

•figures "under section 8 or section 12 or section 13" shall be substituted;

•(xi) in clause (v), the words and figures "under section 11" shall be omitted;

•(xii) after clause (v), the following clause shall be inserted, namely:—

•'(va) "standard block" means a block of the offshore area of one minute

•latitude by one minute longitude and includes the seabed and its subsoil and

•waters superjacent to the seabed within such block;';

•(xiii) in clause (w), for the words "boat, sailing vessel or any other vessel of any

•description", the words "barge, boat, container, sailing vessel or stationary vessel or

•any other vessel of any description, submersible or otherwise and remotely operated

•or otherwise, used in any operation or any activity pursuant thereto" shall be

substituted.

SECTION Section 40

Untitled Section

•section 19A; and ( xix) the measures to be taken for preventing illegal mining,

•transportation, and storage of minerals and for the purposes connected therewith.

SECTION Section 41

Untitled Section

3.The matters in respect of which rules may be made and notifications issued are

•matters of procedure and administrative detail and it is not practicable to provide for them

•in the proposed legislation itself. The delegation of legislative power is, therefore, of a

•normal character.

•16

•ANNEXURE

•EXTRACTS FROM THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION)

•ACT 2002

•(17 OF 2003)

•* * * * *

SECTION Section 42

Untitled Section

4.In this Act, unless the context otherwise requires,—

•* * * * *

(b)''atomic minerals" means the minerals included in atomic minerals specified

•in Part B of the First Schedule to the Mines and Minerals (Development and Regulation)

•Act, 1957;

•* * * * *

(d)"exploration licence" means a licence granted under section 12;

•* * * * *

(i)"lessee" means the person in whose name the production lease is granted;

(j)"licensee" means the person in whose name the exploration licence is granted;

(k)"mine" means any place in the offshore area wherein any exploration or

•production operation is carried on, together with any vessel, erection, appliance, artificial

•island or platform and premises in the offshore area used for the purposes of exploration,

•winning, treating or preparing minerals, obtaining or extracting any mineral or metal by

•any mode or method, and includes any area covered by an exploration licence or

•production lease where exploration or production operation has been, or is being, or

•may be, carried on under the provisions of this Act;

•* * * * *

(o)"operating right" means the right of holder of a reconnaissance permit, or an

•exploration licence, or a production lease;

•* * * * *

(t)"production lease" means a lease granted under section 13 which confers an

•exclusive right for the purpose of undertaking production operation;

•* * * * *

(v)"reconnaissance permit" means a permit granted under section 11 for the

•purpose of undertaking reconnaissance operation;

(w)"vessel" includes any ship, boat, sailing vessel or any other vessel of any

description.

•* * * * *

Definitions.

•67 of 1957.

•17

SECTION Section 43

Untitled Section

•CHAPTER II

•GENERAL PROVISIONS FOR ACQUISITION OF OPERATING RIGHTS IN THE OFFSHORE AREAS

SECTION Section 44

Untitled Section

5.(1) No person shall undertake any reconnaissance operation, exploration operation

•or production operation in the offshore areas, except under and in accordance with the

•prescribed terms and conditions of a reconnaissance permit, exploration licence or production

•lease granted under this Act and the rules made thereunder:

•Provided that nothing in this sub-section shall apply to any reconnaissance operation

•or exploration operation undertaken by the Geological Survey of India, Atomic Minerals

•Directorate of Exploration and Research, the Chief Hydrographer to the Government of India

•of Naval Hydrographic Office of the Indian Navy, the National Institute of Oceanography,

•the National Institute of Ocean Technology of Department of Ocean Development of the

•Government of India, or any other agency duly authorised in this behalf by the Central

Government.

(2)A permittee or licensee or lessee shall furnish—

(a)all data, as the case may be, relating to reconnaissance operation or mineral

•exploration or mining such as bathymetry, geomorphology, mineral distribution, anomaly

•maps, sections, core logs, location maps, plans, structures, contour maps, chemical

•analysis, data on current tides, waves, wind, other geophysical and geotechnical data

•and any other data collected during exploration operation or mining operation, to the

•Director-General, Geological Survey of India, Kolkata and the Controller General, Indian

•Bureau of Mines, Nagpur;

(b)all information pertaining to atomic minerals collected, as the case may be,

•during reconnaissance operation or exploration operation or mining operation, to the

•Secretary to the Government of India dealing with the Atomic Energy, Director-General,

•Geological Survey of India, Kolkata and the Controller General, Indian Bureau of Mines,

•Nagpur;

•* * * * *

(4)No operating right shall be granted or renewed otherwise than in accordance with

•the provisions of this Act and the rules made thereunder and any reconnaissance permit,

•exploration licence or production lease granted, renewed or acquired in contravention of the

•provisions of this Act or any rules made thereunder, shall be void.

SECTION Section 45

Untitled Section

6.The Central Government shall not grant an operating right to any person unless

•such person—

(a)is an Indian national, or a company as defined in section 3 of the Companies

•Act, 1956; and

(b)satisfies such conditions as may be prescribed:

•Provided that no production lease for atomic minerals or prescribed substances

•may be granted without consultation with the Department of the Government of India

•dealing with the Atomic Energy.

SECTION Section 46

Untitled Section

7.(1) Where the Central Government, after consultation with the administering authority,

•is of the opinion that it is expedient in the interest of development and regulation of offshore

•mineral resources, preservation of natural environment and prevention of pollution, avoidance

•of danger to public health or communication, ensuring safety of any offshore structure or

•conservation of mineral resources, the Central Government may prematurely terminate any

•operating right in respect of any mineral in any offshore area or part thereof.

•Reconnaissance,

•exploration or

•production to

•be under

•permit,

•licence or

lease.

•Grant of

•operating

right.

•Termination

•of operating

right.

•1 of 1956.

•18

•19

(2)No order for premature termination of operating right under sub-section (1) shall be

•made except after giving the holder of operating right a reasonable opportunity of being

heard.

(3)Where the holder of any operating right fails to commence operation within the

•period specified in section 14 or discontinues the operation for a period of two years, the

•operating right shall lapse from the date of execution of the lease or, as the case may be,

•discontinuance of the operation:

•Provided that the administering authority, on an application made by the holder of

•operating right and after being satisfied that such non-commencement of operation or

•discontinuation thereof, is due to the reasons beyond the control of the holder of operating

•right, may condone such non-commencement or discontinuation.

•* * * * *

SECTION Section 47

Untitled Section

8.(1) * * * * *

(2)The Central Government may, from time to time, by notification in the Official

•Gazette, dereserve, any area reserved under sub-section (1), in the interest of development

•and regulation of the offshore mineral.

SECTION Section 48

Untitled Section

9.(1) The Central Government may, in the public interest, by order in writing and

•communicated to the permittee, licensee or lessee, as the case may be, close any area either

•in part or whole, covered under any operating right, for the preservation of natural environment

•and prevention of pollution, or to avoid danger to public health, or communication, or to

•ensure safety of any offshore structure or platform, or for the conservation of offshore

•mineral, or for national security or for any other strategic consideration.

(2)Any area, either in part or whole closed under sub-section (1) and included in any

•operating right, shall, from the date of such order, be deemed to be excluded for the purposes

•of the operating right and the holder of the operating right shall not undertake any operation

•in the area covered under such order from the date specified therein.

SECTION Section 49

Untitled Section

10.(1) Within six months from the date of commencement of this Act, and subsequently

•at such times as may be considered necessary in this behalf by the administering authority,

•it shall, by notification in the Official Gazette, declare the parts of the offshore areas which

•shall be available for grant of reconnaissance permit, exploration licence or production lease.

(2)Any application for the grant of reconnaissance permit, exploration licence or

•production lease in respect of any area not covered by a notification issued under

•sub-section (1) shall be deemed to be premature and no application shall be entertained

therefor.

(3)Operating rights shall be granted in standard block of five minutes longitude by

•five minutes latitude and such grant may cover more than one standard block which shall be

contiguous.

SECTION Section 5

Untitled Section

3.In section 5 of the principal Act,—

(a)in sub-section (1),—

(i)for the words "exploration licence or production lease granted", the

•words "a composite licence, or an exploration licence, or a production lease,

•granted" shall be substituted;

•(

•ii) in the proviso,—

(A)for the words "Atomic Minerals Directorate of Exploration and

•Research", the words "Atomic Minerals Directorate for Exploration and

•Research" shall be substituted;

•18 of 2013.

•Amendment

•of section 5.

•5

•10

•15

•20

•25

•30

•35

•40

•45

•3

(B)for the words "Naval Hydrographic Office of the Indian Navy",

•the words "the National Hydrographic Office" shall be substituted;

(C)for the words "any other agency duly authorised in this behalf

•by the Central Government", the words "any other agency including a

•private entity, duly authorised in this behalf by the Central Government by

•notification in the Official Gazette, subject to such conditions as may be

•specified therein" shall be substituted;

(b)for sub-section ( 2), the following sub-section shall be substituted,

•namely:—

•"(2) Every permittee, licensee and lessee referred to in sub-section ( 1),

•and the Government organisation, agency or private entity referred to in the

•proviso thereof, shall—

(a)furnish to the administering authority and such other

•authority as may be prescribed, all exploration and operational data,

•reports, samples and other information in respect of or collected

•pursuant to an operation, in such manner and within such period, as

•may be prescribed; and

(b)all exploration and operational data, reports, samples and other

•information in respect of or collected pursuant to an operation, shall be

•held by such permittee, licensee, lessee, Government organisation, agency

•or private entity, as the case may be, in strict confidence and any

•dissemination, pursuant to a sale or otherwise, of such data, reports or

•other information, or sharing of its samples, shall be subject to such terms

•and conditions, as may be prescribed.";

(c)in sub-section (4),—

(i)for the words "granted or renewed", the words "granted, extended or

•acquired" shall be substituted;

•(ii) for the words "exploration licence or production lease granted, renewed

•or acquired", the words "composite licence, exploration licence or production

•lease, granted, extended or acquired" shall be substituted.

SECTION Section 50

Untitled Section

11.(1) The administering authority may grant a non-exclusive reconnaissance permit

•to any person eligible under section 6 for grant of operating right.

(2)The period for which a reconnaissance permit may be granted under sub-section (1)

•shall be for a period specified in such permit which shall not exceed two years.

(3)A reconnaissance permit granted under sub-section ( 1) may be renewed for a

•period not exceeding two years if, after a review of the progress made during the period of

•such grant, the administering authority is satisfied that a further period is necessary to

•complete the reconnaissance operation.

(4)The area that may be granted under one reconnaissance permit shall not exceed a

•block of two degree latitude by two degree longitude.

(5)The administering authority may grant reconnaissance permits to more than one

•person in respect of the same area for the same mineral deposits in the interest of offshore

•mineral development.

•Reservation of

areas.

•Power to close

areas.

•Availability of

•areas for grant

•of permit,

•licence or

lease.

•Grant of

•reconnaissance

permit.

•20

SECTION Section 51

Untitled Section

12.(1) The administering authority may grant an exploration licence to any person

•who—

(a)is eligible under section 6 for grant of operating right;

(b)produces, to the satisfaction of the administering authority, evidence that

•such person possesses the requisite technical ability and financial resources to

•undertake exploration operation based on such scientific parameters, as may be

•prescribed;

(c)submits a work programme for the area applied for, prepared in such manner

•and supported by such data as may be prescribed, setting forth the activities proposed

•to be carried out during the period of the exploration licence including the intended

•exploration schedule and methods to be used, an estimated schedule of expenditure,

•measures to prevent pollution and protect the environment and to monitor the

•effectiveness of environmental safeguards subject to the modifications which the

•administering authority may make in such work programme;

(d)undertakes not to deviate from the work programme for exploration licence

•approved by the administering authority; and

(e)has fulfilled, to the satisfaction of administering authority, all his statutory

•obligations under any operating right previously—

(i)granted; or

•(ii) transferred in the prescribed manner,

•to him.

(2)The administering authority may, if there is any reasonable cause to believe that

•any person, to whom an exploration licence has been granted, has violated any undertaking

•given under clause (d) of sub-section (1), terminate the exploration licence.

(3)All applications for the grant of exploration licence received within the prescribed

•time and which satisfy the conditions specified in sub-section (1) shall be considered together

•and while making a selection for the grant of exploration licence, the administering authority

•shall follow the procedure given below, namely:—

(a)where only one application is received in respect of an area, the administering

•authority may grant the exploration licence to the applicant;

(b)where two or more applications are received in respect of the same area or

•substantially the same area, the order of preference shall be as follows, namely:—

(I)preference shall be given to an applicant who requires the mineral for

•use in an industry either already owned by the applicant or who has taken

•sufficient steps to set-up such industry:

•Provided that where there are more than one application of such category,

•the administering authority may grant licence based on a comparative evaluation

•of the—

•( i) nature, quality and experience of the technical personnel

•employed by the applicant;

•(ii) financial resources of the applicant;

•(iii) nature and quantum of the exploration work proposed by the

•applicant; and

•(iv) nature, quality and quantum of data submitted along with the

•programme of exploration;

•(II) in case of other applicants, not covered under sub-clause ( I), the

•administering authority may grant licence based on a comparative evaluation of

•matters stated in items (i) to (iv) of the proviso to sub-clause (I).

•Grant of

•exploration

licence.

•21

(4)The period for which an exploration licence may be granted shall not exceed

•three years.

(5)An exploration licence granted under sub-section (1) may be renewed for a period

•not exceeding two years if, after a review, the administering authority is satisfied that the

•licensee has been conducting the exploration operation in accordance with the work programme

•approved by the administering authority regarding such licence and longer period of renewal

•of the licence is considered necessary to enable the licensee to complete exploration.

(6)The area that may be granted under exploration licence shall not exceed a block of

•thirty minutes latitude by thirty minutes longitude:

•Provided that if the administering authority is of the opinion that in the interest of the

•development of any mineral, it is necessary so to do, it may, for reasons to be recorded in

•writing, permit any person to acquire an area in excess of the area specified in this

•sub-section.

SECTION Section 52

Untitled Section

13.(1) The administering authority shall grant a production lease to any person who—

(a)is eligible under section 6 for grant of operating right;

(b)produces, to the satisfaction of the administering authority, evidence that

•such person possesses the requisite technical ability and financial resources to

•undertake production operation based on such scientific parameters as may be

•prescribed;

(c)submits a work programme for the systematic development of the mineral

•deposits of the area applied for, prepared in such manner and supported by such data

•as may be prescribed and obtained through exploration operation, setting forth the

•activities proposed to be carried out during the period of the lease including the

•resources assessment of the area, the intended schedule of commercial production,

•methods and technologies to be used for commercial production and processing,

•measures to be taken to protect the environment and to monitor the effectiveness of

•environmental safeguards;

(d)undertakes not to deviate from work programme for production lease approved

•by the administering authority; and

(e)has fulfilled, to the satisfaction of the administering authority, all the statutory

•obligations under any operating right previously—

(I)granted; or

•(II) transferred in the prescribed manner,

•to him:

•Provided that a licensee shall have the exclusive right to a production lease over such

•part of the offshore area covered by his exploration licence as he may desire subject to the

•condition that the administering authority is satisfied that the licensee—

(i)has undertaken exploration operation to establish mineral resources in such

•offshore area;

•(ii) has not committed any breach of the terms and conditions of the exploration

•licence; and

•(iii) has not become ineligible under the provisions of this Act.

(2)The administering authority may, if there is any reasonable cause to believe that

•any person, to whom a production lease has been granted, has violated any undertaking

•given under clause (d) of sub-section (1), terminate the production lease.

•( 3) The period for which a production lease may be granted shall not exceed

•thirty years.

•Grant of

•production

lease.

•22

(4)A production lease granted under sub-section (1) may be renewed for a period not

•exceeding twenty years, if, after a review, the administering authority is satisfied that the

•lessee has been conducting the production operation in accordance with the work programme

•approved by the administering authority regarding such lease.

(5)The area under a production lease shall not exceed a block of fifteen minutes

•latitude by fifteen minutes longitude:

•Provided that if the administering authority is of the opinion that in the interest of

•the development of any mineral, it is necessary so to do, it may, for reasons to be

•recorded in writing, permit any person to acquire an area in excess of the area specified

•in this sub-section.

•* * * * *

SECTION Section 53

Untitled Section

14.A holder of operating right shall commence operation within the period specified

•below after the grant of the operating right and shall thereafter conduct such operation in

•proper, skilful and workman-like manner, as follows:—

(a)reconnaissance permit-six months;

•* * * * *

SECTION Section 54

Untitled Section

16.(1) A lessee shall pay royalty to the Central Government in respect of any mineral

•removed or consumed by him from the area covered under the production lease, at the rate

•for the time being specified in the First Schedule in respect of that mineral.

•* * * * *

SECTION Section 55

Untitled Section

17.(1) A lessee shall pay to the Central Government, every year, fixed rent in respect of

•the area covered under the production lease, at the rate for the time being specified in the

•Second Schedule:

•Provided that where the lessee becomes liable under section 16 to pay royalty for any

•mineral removed or consumed by him from the area covered under such lease, he shall be

•liable to pay either such royalty or the fixed rent in respect of that area, whichever is greater.

•* * * * *

SECTION Section 56

Untitled Section

18.Every lessee, whose production operation extends beyond two hundred nautical

•miles from the baseline from which the breadth of the territorial sea is measured, shall pay in

•advance, in addition to other payments required under this Act, to the Central Government,

•the amount to be paid to the International Seabed Authority towards fulfilment of obligation

•of the Central Government under Article 82 of the United Nations Convention on Law of the

•Sea, 1982.

•* * * * *

•Period of

•commencement

•of operating

rights.

Royalty.

•Fixed rent.

•Contribution

•towards

•International

•Seabed

Authority.

SECTION Section 57

Untitled Section

•CHAPTER IV

•OFFENCES

SECTION Section 58

Untitled Section

23.(1) (a) Whoever undertakes any reconnaissance operation, exploration operation

•or production operation in offshore area without any permit, licence or lease, as the case may

•be, granted under this Act shall be punished with imprisonment for a term which may extend

•to five years, or with fine which may extend to fifty thousand rupees, or with both.

(b)A permittee, licensee or lessee who does not furnish any data, information or

•document under sub-section (2) of section 5, in the manner provided therein, shall be punished

•with imprisonment which may extend to three years, or with fine which may extend to

•twenty-five thousand rupees, or with both.

•* * * * *

(d)Whoever ships, transports, offers for sale, sells, purchases, imports, exports, or

•has custody, control or possession of, any mineral recovered, processed or retained in

•violation of this Act or any rule made thereunder shall be punished with imprisonment which

•may extend to three years, or with fine which may extend to three years, or with fine which

•may extend to fifty lakh rupees, or with both.

•* * * * *

(2)Whoever—

(a)intentionally obstructs any authorised officer referred to in section 22 in the

•exercise of any powers conferred under this Act; or

(b)fails to afford reasonable facilities to the authorised officer referred to in

SECTION Section 59

Untitled Section

•section 22 or his assistant to board the vessel or enter the mine or to provide for

•adequate security to such officer or assistant at the time of entry into the vessel or

•mine or when they are on board such vessel or mine; or

(c)fails to stop the vessel or mine or to produce the licence, permit, log book or

•any other document, as the case may be, on board such vessel, or mine, when required

•to do so by the authorised officer referred to in section 22; or

(d)interferes with, delays, or prevents, by any means, the lawful apprehension

•of any person under this Act, shall be punished with imprisonment for a term which

•may extend to five years, or with fine which may extend to fifty thousand rupees, or

•with both.

(3)Whoever contravenes any other provision of this Act or rules made thereunder,

•other than those specified in sub-sections (1) and (2) shall be punished with imprisonment

•for a term which may extend to five years, or with fine which may extend to one crore rupees,

•or with both, and in the case of continuing contravention, with an additional fine which may

•extend to five lakh rupees for every day during which such contravention continues.

•* * * * *

Offences.

•23

SECTION Section 6

Untitled Section

4.In section 6 of the principal Act,—

(i)in clause (a), for the words and figures "section 3 of the Companies Act, 1956",

•the words, brackets and figures "clause (20) of section 2 of the Companies Act, 2013"

•shall be substituted;

•(ii) for the proviso, the following provisos shall be substituted, namely:—

•"Provided that no exploration licence, or composite licence, or production

•lease shall be granted for an area to any person other than the Government, a

•Government company or a corporation, in respect of any minerals specified in

•Part B of the First Schedule to the Mines and Minerals (Development and

•Regulation) Act, 1957, subject to such conditions and manner as may be

•prescribed, where the grade of such mineral in such area is equal to or greater

•than such threshold value as the Central Government may, by notification in the

•Official Gazette, specify:

•Provided further that no production lease shall be granted in respect of

•any part of the offshore area, unless the existence of mineral resources in such

•offshore area has been adequately established in accordance with such

•parameters as may be prescribed.".

•Amendment

•of section 6.

•1 of 1956.

•18 of 2013.

•67 of 1957.

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SECTION Section 60

Untitled Section

•CHAPTER V

•CIVIL LIABILITY AND ADJUDICATION

SECTION Section 61

Untitled Section

28.(1) A person to whom a permit, licence or lease is granted under this Act,—

•* * * * *

(b)contravenes any particular terms and conditions applicable only in case of

•such permittee, licensee or lessee as the case may be, shall also be liable, apart from the

•liability under clause (a), to pay additional amount to the Central Government which

•shall not be less than one lakh rupees and which may extend to ten lakh rupees.

•* * * * *

SECTION Section 62

Untitled Section

35.(1) * * * * *

(2)Without prejudice to the generality of the foregoing power, such rules may provide

•for all or any of the following matters, namely:—

(a)the terms and conditions of a reconnaissance permit, exploration licence or

•production lease under sub-section (1) of section 5;

•* * * * *

(c)substances to be prescribed under proviso to section 6;

(d)the requisite technical ability and financial resources to undertake exploration

•operation on scientific parameters under clause (b) of sub-section (1) of section 12;

(e)the manner in which a work programme shall be prepared and the data by

•which the work programme shall be supported under clause (c) of sub-section (1) of

SECTION Section 63

Untitled Section

•section 12;

(f)the manner of transfer referred to in sub-clause (ii) of clause (e) of sub-section (1)

•of section 12;

(g)the time within which the applications under sub-section (3) of section 12 are

•to be received;

(h)the requisite technical ability and financial resources to undertake production

•operation on scientific parameters under clause (b) of sub-section (1) of section 13;

(i)the manner in which a work programme shall be prepared and the data by

•which the work programme shall be supported under clause (c) of sub-section (1) of

SECTION Section 64

Untitled Section

•section 13;

(j)the manner of transfer referred to in sub-clause ( II) of clause ( e) of

•sub-section (1) of section 13;

(k)norms for regulating the safety and health of persons and safety of property

•engaged in operations authorised under this Act, the implementation thereof and

•matters connected therewith under sub-section (2) of section 19;

•* * * * *

(p)the period within which appeal shall be preferred under, and the further

•period which may be permitted under the proviso to, sub-section (2) of section 34;

•* * * * *

•Civil liability

•and

adjudication.

•Power to

•make rules.

•24

•25

SECTION Section 65

Untitled Section

36.Notwithstanding anything to the contrary contained in this Act or any rule made

•thereunder, the Central Government may, if it is of the opinion that in the interests of the

•offshore mineral development, it is necessary so to do, by order and for reasons to be

•recorded in writing, authorise in any specific case the grant, renewal or transfer of any

•operating right to any person on such terms and conditions as it may specify in this behalf

•in such order.

•* * * * *

•THE SECOND SCHEDULE

•[See section 17(1)]

•R

•ATES OF FIXED RENT

•Rates of fixed rent in rupees per standard block per annum

•Size 1st Y ear of the 2nd to 5th year 6th to 10th year 11th year of the

•lease of the lease of the lease lease and onwards

•Standard block Nil Rupees 50,000 Rupees 1,00,000 Rupees 2,00,000

•of 5 minutes

•longitude by

•5 minutes latitude.

•Relaxation in

•specific cases.

•LOK SABHA

•————

•A

•BILL

•to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002.

•————

•(Shri Pralhad Joshi, Minister of Coal and Mines )

•MGIPMRND—159LS(S3)—21-07-2023.

SECTION Section 7

Untitled Section

5.In section 7 of the principal Act,—

(a)in sub-section (1),—

(i)for the words "that it is expedient in the interest of", the words "that it

•is expedient in public interest, strategic interest of the country, in the interest of"

•shall be substituted;

•(ii) after the words "conservation of mineral resources", the words "or for

•any other reason" shall be inserted;

(b)in sub-section ( 2), for the words "opportunity of being heard", the words

•"opportunity of being heard, except in cases where premature termination is being

•done on the grounds of strategic interest of the country" shall be substituted;

(c)in sub-section (3),—

(i)in the proviso, for the words "condone such non-commencement or

discontinuation.", the words and figures "extend the period specified in section 14

•by a further period not exceeding one year and such extension shall not be

•granted for more than once during the entire period of operating right:" shall be

•substituted;

•(ii) after the proviso, the following proviso shall be inserted, namely:—

•"Provided further that where the holder of operating right—

(a)fails to undertake operation; or

(b)having commenced the operation, discontinues such

•operation,

•before the end of the extended period, such operating right shall also

•lapse from the date of execution of the lease or, as the case may be,

•discontinuance of the operation.";

(d)after sub-section (3), the following shall be inserted, namely:—

•"(4) Where the holder of a production lease fails to undertake production

•and dispatch for a period of four years after the date of execution of the lease, or

•having commenced production and dispatch, discontinues the same for a period

•of two years, then such lease shall lapse on the expiry of the period of four years

•from the date of its execution or, as the case may be, two years from date of

•discontinuance of the production and dispatch:

•Provided that the administering authority may, on an application made by

•the lessee, and after being satisfied that such non-commencement of production,

•or dispatch, or discontinuation thereof, was due to the reasons beyond the

•control of the lessee, may extend such period by a further period not exceeding

•one year, but such extension shall not be granted for more than once during the

•entire period of lease:

•Provided further that where the lessee,—

(a)fails to undertake production or dispatch; or

(b)having commenced the production and dispatch, discontinues

•the same,

•before the end of the extended period, such lease shall lapse from the date of its

•execution or, as the case may be, discontinuance of production or dispatch.".

SECTION Section 8

Untitled Section

6.In section 8 of the principal Act, after sub-section ( 2), the following sub-sections

•shall be inserted, namely:—

•"(3) Where the Central Government reserves any offshore area under

•sub-section (1), the administering authority may, subject to such terms and conditions

•as may be prescribed, grant a composite licence, or a production lease, in such area or

•any part thereof to the Government, or a Government company, or a corporation.

•Amendment

•of section 8.

•Amendment

•of section 7.

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(4)A composite licence or a production lease granted to the Government, or a

•Government company, or a corporation under sub-section (3) shall be subject to the

•same terms and conditions applicable to a licensee or a lessee, as the case may be,

•except the procedure specified for grant of a composite licence under section 12 or a

•production lease under section 13.

(5)Where a Government company, or corporation is desirous of carrying out the

•exploration operation or production operation in a joint venture with other persons,

•the joint venture partner shall be selected through a competitive process, and such

•Government company or corporation shall hold more than seventy-four per cent. of

•the paid up share capital in such joint venture.".

SECTION Section 9

Untitled Section

7.In section 9 of the principal Act,—

(a)in sub-section (1),—

(i)after the words "any operating right, for", the words "such period as

•may be specified in the order, for" shall be inserted;

•(ii) for the words "offshore mineral, or for national security", the words

•"offshore mineral, or for regulation of offshore areas, or for national security"

•shall be substituted;

(b)in sub-section (2),—

(i)after the words "purposes of the operating right", the words "for such

•period as may be specified in the order" shall be inserted;

•(ii) for the words "from the date specified therein", the words "during the

•period of closure specified therein" shall be substituted.