Rajya Sabha passes bill to provide fixed 50-year production lease for offshore minerals

The bill to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002 was passed by Lok Sabha on Tuesday

New Delhi: A bill to provide a fixed 50-year production lease for offshore minerals was passed by Rajya Sabha on Thursday amid a walkout by the opposition members over the situation in ethnic violence-hit Manipur.

When the Upper House reassembled for the post-lunch session, Coal and Mines Minister Pralhad Joshi moved The Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 for consideration even as the opposition parties insisted on a discussion on the Manipur situation.

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The bill to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002 was passed by Lok Sabha on Tuesday.

Discussion on the bill continued even after the members of opposition parties, including the Congress, RJD, TMC, AAP, CPI and CPM, staged a walkout from the Rajya Sabha for the second time in the day after they were not allowed to raise the Manipur issue.

Members including Sasmit Patra (BJD), Anil Sukhdeorao Bonde (BJP), M Thambidurai (AIADMK), K Laxman (BJP), V Vijayasai Reddy (YSRCP) and Ramji (BSP) took part in the discussion.

In his reply to the discussion, Joshi sought to address concerns raised by some of the members over the impact of offshore mining on the marine ecosystem and its implications on the livelihood of those dependent on the seas, especially fishermen.

There are so many safeguards through legislations and rules, he said and asserted that “environment legislations will be followed and states and all other stakeholders also will be duly consulted and all laws will be applicable in the offshore areas.” “This is not sea-bed mining. It happens in the continental shelf within our exclusive economic zone (EEZ) and the entire world is doing it and only India is not doing it,” the minister said.

Before notifying any offshore area for the grant of lease, the ministry will consult many other ministries, including ministries of fisheries, forest, climate change, home and defence along with state governments, he said adding there is no question of violation of any law and the priority remains the protection of marine biodiversity and livelihood of fishermen.

Citing examples of Myanmar, Thailand, Malaysia, Singapore, Indonesia and Namibia, Joshi said these countries are already doing offshore mining while protecting marine ecosystems and those people who are dependent on the sea.

The minister also asserted that the Offshore Areas Mineral Trust is being established to mitigate the adverse impact, if at all there is any, of offshore mining and for disaster relief and benefit of the persons affected by exploration and production.

He said the bill will play a critical role in enabling India to tap resources found in the vast exclusive economic zone (EEZ) of over 20 lakh sq km where the country has the right to do offshore mining.

The minister said GSI (Geological Survey of India) has already done surveys and more than 300 blocks have been identified and created, adding as India moves towards renewable energy and electric vehicles, the country will need cobalt in equally large quantities along with lithium.

He alleged that the previous UPA government indulged in corruption in allocation of offshore blocs and asserted that the bill will bring transparency through auction as the route to award production leases for offshore minerals.

The bill also provides a grant of production lease to the private sector only through auction through a competitive bidding process.

It aims at introducing a four-year timeline for commencement of production and dispatch after the execution of composite licence or production lease, and time-line of two years (extendable by one year) for re-commencement of production and dispatch after discontinuation.

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 similar to the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.

Besides, in the case of atomic minerals, the grant of exploration licence or production lease would be made only to a government or a government corporation.

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 which may be caused by exploration or production operations.