Central government intends to allow offshore mining
COAL & MINING

Central government intends to allow offshore mining

The central government is launching plans for private-sector offshore mining of non-atomic minerals. The mines ministry has notified draught amendments to the Offshore Area Mineral (Development & Regulation) Act, 2002 (OAMDR Act), which will pave the way for private sector participation in mining of maritime resources in India’s territorial waters along its 7,517-km coastline.

The proposed changes aim to create a transparent mechanism for distributing concessions. As an alternative to the renewal regime, it is proposed that production leases be granted through auction to private sector and state-controlled firms, in addition to a composite exploration-cum-production licence and a lease period of 50 years to attract private sector investments. However, atomic minerals will continue to be monopolised by state-owned enterprises. The joint venture will be chosen through a competitive bidding process (JV). A joint venture model in which public sector units (PSUs) hold the majority stake is also being considered.

In accordance with global concession agreements, the size of the standard block production lease area has been limited to ensure proper regulation.

The move will benefit new-age sectors such as renewable energy while also reducing India's reliance on imports.

The coastline of India stretches across nine states and four union territories, offering enormous mineral mining potential.

See also:
NMDC looks to mine lithium, nickel, cobalt in foreign lands
India's mineral production rises 9.8 per cent in December 2022


The central government is launching plans for private-sector offshore mining of non-atomic minerals. The mines ministry has notified draught amendments to the Offshore Area Mineral (Development & Regulation) Act, 2002 (OAMDR Act), which will pave the way for private sector participation in mining of maritime resources in India’s territorial waters along its 7,517-km coastline. The proposed changes aim to create a transparent mechanism for distributing concessions. As an alternative to the renewal regime, it is proposed that production leases be granted through auction to private sector and state-controlled firms, in addition to a composite exploration-cum-production licence and a lease period of 50 years to attract private sector investments. However, atomic minerals will continue to be monopolised by state-owned enterprises. The joint venture will be chosen through a competitive bidding process (JV). A joint venture model in which public sector units (PSUs) hold the majority stake is also being considered. In accordance with global concession agreements, the size of the standard block production lease area has been limited to ensure proper regulation. The move will benefit new-age sectors such as renewable energy while also reducing India's reliance on imports. The coastline of India stretches across nine states and four union territories, offering enormous mineral mining potential. See also: NMDC looks to mine lithium, nickel, cobalt in foreign landsIndia's mineral production rises 9.8 per cent in December 2022

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?