A Bill to provide a fixed 50-year production lease for offshore minerals was passed by the Rajya Sabha on Thursday amid a walkout by opposition members over the situation in 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 Manipur.
The Bill to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002 was passed by the Lok Sabha on Tuesday.
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 award production leases for offshore minerals.
It aims at introducing a four-year timeline for the commencement of production and dispatch after the execution of composite licence or production lease, and a timeline 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.
The Bill also provides a grant of production lease to the private sector only through auction through a competitive bidding process.
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
