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 landsIndia's mineral production rises 9.8 per cent in December 2022