In a significant development, the Ministry of Mines has recently amended the Offshore Areas Mineral (Development & Regulation) Act, 2002 [OAMMR Act], effective from August 17, 2023. The amendment brings about a paradigm shift by introducing a transparent and non-discretionary auction process for the allocation of operating rights in offshore areas, covering territorial waters, continental shelf, exclusive economic zone, and other maritime zones of India.

Under the amended Act, a host of reforms have been instituted to streamline the regulatory framework. Notable changes include the establishment of a trust dedicated to aiding mining-affected individuals, provisions for increased exploration, relief mechanisms in the event of disasters, elimination of discretionary renewals, and the imposition of a uniform lease period of fifty years. The introduction of a composite license, defined area limits for various operating rights, and simplified processes for the transfer of composite licenses and production leases further mark key aspects of the reform.

Moreover, the Ministry has identified specific blocks in the exclusive economic zone of India, extending beyond the territorial waters (12 nautical miles), earmarked for minerals such as lime-mud and poly metallic nodules. Seeking to avoid any project overlaps, the Ministry has invited comments and inputs from concerned Ministries and Departments.

To facilitate the seamless implementation of the amended Act, the Ministry has formulated two draft rules: the Offshore Areas Mineral Auction Rules and the Offshore Areas Existence of Mineral Resources Rules. These drafts have been made available for public scrutiny on the Ministry’s official website [https://mines.gov.in/webportal/home] since December 26, 2023. Stakeholders have been granted a 30-day window, ending on January 25, 2024, to provide their comments and feedback on the proposed rules.

Notably, the draft Offshore Areas Mineral Auction Rules draw inspiration from the Mineral (Auction) Rules, 2015, framed under the Mines and Minerals (Development and Regulation) Act (MMDR Act). These rules are poised to reshape the landscape of offshore mineral resource allocation, ensuring a more transparent, accountable, and efficient regulatory environment.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!