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Source- This post is based on the article “Mines Ministry Publishes Draft Rules for Offshore Mineral Blocks Auction for Public Consultation” published in “PIB” on 28th December 2023.
Why in the News?
Recently Ministry of Mines has published two draft rules for offshore mineral blocks auction under the Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR Act).
What are the Key Provisions of Draft Offshore Areas Mineral (Auction) Rules?
1) Based on the Mineral (Auction) Rules, 2015 framed under the Mines and Minerals (Development and Regulation) Act (MMDR Act).
2) Bidding- The combined license and production lease will be awarded through an ascending forward online electronic bidding system.
3) Requirement for Auction of Production Lease: Net worth requirements for auction of production lease will be based on the block’s estimated resource value, capped at a maximum of INR 200 crore.
4) Requirement for Auction of Composite License: The auction’s net worth criteria for a composite license will also be determined by the block’s estimated resource value, with a maximum requirement of INR 100 crore.
– For blocks with unassessable resource quantities, the net worth requirement is set at INR 25 crore.
What are the Key Provisions of draft Offshore Areas Mineral (Auction) Rules?
1) Derived from the Minerals (Evidence of Mineral Contents) Rules, 2015, established under the MMDR Act.
2) These regulations outline exploration standards for diverse mineral types and deposits.
3) The proposed regulations suggest a minimum G2 level of exploration (General Exploration) for considering a block for production lease auction.
4) To qualify for the grant of a composite license, exploration must extend to at least G4 level or the mineral potentiality of the block must be identified.
Note- There are the four stages of geological assessment i.e. G1 (detailed exploration), G2 (general exploration), G3 (prospecting) and G4 (reconnaissance)
What is Offshore Areas Mineral (Development & Regulation) Act, 2002 [OAMDR Act]?
1) The Act governs the development and regulation of mineral resources in India’s territorial waters, continental shelf, exclusive economic zone, and other maritime zones, along with related matters.
2) The OAMDR Act was recently amended via Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023.
| For information on Offshore Areas Mineral (Development and Regulation) Amendment Bill,2023 Click Here to read |
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