The Ministry of Law And Justice (MoLJ) on August 11, 2023, issued the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 to further amend the Offshore Areas Mineral (Development and Regulation) Act, 2002.
The following amendments have been stated:
• In section 5 which specifies Reconnaissance, exploration or production to be under permit, licence or lease.
o in sub-section (1), —
(i) for the words "exploration licence or production lease granted", the words "a composite licence, or an exploration licence, or a production lease, granted" shall be substituted;
(ii) in the proviso, —
(A) for the words "Atomic Minerals Directorate of Exploration and Research", the words "Atomic Minerals Directorate for Exploration and Research" shall be substituted;
(B) for the words "Naval Hydrographic Office of the Indian Navy", the words "the National Hydrographic Office" shall be substituted;
(C) for the words "any other agency duly authorised in this behalf by the Central Government", the words "any other agency including a private entity, duly authorised in this behalf by the Central Government by notification in the Official Gazette, subject to such conditions as may be specified therein" shall be substituted;
In section 6 which specifies Grant of operating right.
(i) in clause (a), for the words and figures "section 3 of the Companies Act, 1956", the words, brackets and figures "clause (20) of section 2 of the Companies Act, 2013" shall be substituted;
(ii) for the proviso, the following provisos shall be substituted, namely:—
"Provided that no exploration licence, or composite licence, or production lease shall be granted for an area to any person other than the Government, a Government company or a corporation, in respect of any minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, subject to such conditions and manner as may be prescribed, where the grade of such mineral in such area is equal to or greater than such threshold value as the Central Government may, by notification in the Official Gazette, specify:
Provided further that no production lease shall be granted in respect of any part of the offshore area, unless the existence of mineral resources in such offshore area has been adequately established in accordance with such parameters as may be prescribed.".
In section 8 which specifies the Reservation of areas, after sub-section (2), the following sub-sections shall be inserted, namely:—
"(3) Where the Central Government reserves any offshore area under sub-section (1), the administering authority may, subject to such terms and conditions as may be prescribed, grant a composite licence, or a production lease, in such area or any part thereof to the Government, or a Government company, or a corporation.
(4) A composite licence or a production lease granted to the Government, or a Government company, or a corporation under sub-section (3) shall be subject to the same terms and conditions applicable to a licensee or a lessee, as the case may be, except the procedure specified for grant of a composite licence under section 12 or a production lease under section 13.
(5) Where a Government company, or corporation is desirous of carrying out the exploration operation or production operation in a joint venture with other persons, the joint venture partner shall be selected through a competitive process, and such Government company or corporation shall hold more than seventy-four per cent. of the paid-up share capital in such joint venture."
It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint
[Notification No. 17 OF 2023]
