India's parliament passes bill to provide fixed 50-year production lease for offshore minerals
- IBEF
- August 4, 2023
The Rajya Sabha cleared a bill establishing a fixed 50-year production lease for offshore minerals despite a walkout by opposition lawmakers protesting the unrest in Manipur. Even though the opposition parties insisted on a discussion on Manipur, Coal, and Mines Minister, Mr. Pralhad Joshi moved the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023, for consideration when the Upper House reconvened for the post-lunch session. The Bill to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002, was passed by the Lok Sabha.
The Bill seeks to provide a fixed 50-year production lease for offshore minerals. Under this legislation, the government aims to introduce auctions as the route to awarding production leases for offshore minerals.
It intends to establish a four-year schedule for production and dispatch to begin following the execution of a composite licence or production lease and a two-year (extendable by one year) timeline for production and dispatch to resume following a halt.
According to the Statement of Objects and Reasons of the Bill, it proposes to remove the provision for renewal of production lease and provide a fixed period of 50 years for production lease like the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.
Additionally, in the case of atomic minerals, only a government or a government firm would be granted an exploration licence or a production lease. The Bill also permits the private sector to get a grant of production leases only through auction and competitive bidding.
It will enable the central government to frame rules for the conservation and systematic development of minerals in offshore areas and for the protection of the environment by preventing or controlling any pollution that may be caused by exploration or production operations.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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