Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023

Country / jurisdiction: India · Year: 2023 · Status: In force · Level: National · Type: Voluntary

The Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 amends the Offshore Areas Mineral (Development and Regulation) Act, 2002 ('OAMDR Act') to support offshore mineral exploration and production in India. The OAMDR Act regulates mineral resources in the territorial waters, continental shelf, exclusive economic zone and other maritime zones of India.

The key highlights of the amendment are listed below:

Auction-based allocation : The amendment establishes the framework of auctions through competitive bidding (including e‑auction) as the sole method for granting offshore operating rights for minerals other than atomic minerals to the private sector, with a view to enhance fair and transparency allocation of operating rights.

Composite licence regime : The amendment introduces a composite licence regime (in addition to the existing production leases) that allows exploration followed by production, with defined timelines, area limits and the right to convert the license to a production lease upon successful resource establishment.

Lease terms : The tenure of production leases is now fixed to 50 years, and renewal provisions have been eliminated. Additionally, the amendment introduces a ceiling on the total area that may be held by a person across all operating rights for a mineral or group of associated minerals.

Transferability of operating rights : As per the amended law, composite licences and production leases are made transferrable, subject to prescribed conditions, to promote ease of doing business.

Offshore Areas Mineral Trust : The amendment establishes a trust funded by an additional levy on offshore mineral production (up to one‑third of royalty) to finance exploration, research, environmental mitigation, disaster relief and support to affected communities.

Environmental protection : The amendment mandates the Central Government to take action for the protection of the environment by preventing or controlling any pollution caused by exploration or production operations.

Official source: https://mines.gov.in/admin/download/64d9e96cd45ba1692002668.pdf