The Offshore Areas Minerals (Development and Regulation) Amendment Bill, 2023, which establishes a fixed 50-year production lease for offshore minerals, was approved by the Rajya Sabha on Thursday. The Offshore Areas Mineral (Development and Regulation) Act, 2002, is being modified by the bill, which was passed by voice vote with the opposition leaving the chamber and not taking part in the discussion.
Coal and Mines Minister Pralhad Joshi responded to the discussion of the Bill by stating that its goal is to establish a transparent auction process for the distribution of mines. Additionally, the bill aims to limit the method of granting production leases to the private sector to auctions with open bidding. Additionally, it permits the central government to reserve certain mineral-bearing areas and grant operating rights to the government, a government company, or a corporation without conducting a competitive bidding process.
The Bill, which the Lok Sabha approved on August 1, introduces a composite license for allocating rights for both production and exploration. The exploration must be finished within three years according to the terms of the composite license. Upon request by the licensee, this may be extended for an additional two years. The licensee will be given one or more production leases for the explored area if mineral resources have been confirmed.