Section 13 in The Offshore Areas Mineral (Developnent And Regulation) Amendment Act, 2023
13.
(1)The administering authority may, in respect of an offshore area where the existence of mineral resources has been adequately established for grant of production lease as required by the second proviso to section 6, after inviting applications in this behalf, select any person for grant of a production lease, who—(a)fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and(b)is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner and bidding parameters, as may be prescribed.(2)The Central Government shall grant the production lease to the applicant selected in accordance with the procedure laid down under sub-section (1).(3)Every production lease under this section shall be granted for a period of fifty years.(4)The area under a production lease shall comprise of contiguous standard blocks and shall not exceed an area of fifteen minutes latitude by fifteen minutes longitude.(5)Upon grant of a production lease, the lessee shall commence and carry out production operation in such manner and subject to such terms and conditions, as may be prescribed.(6)The provisions of this section shall not apply to—(a)the areas covered under section 8; and(b)the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, where the grade of atomic mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify.".11.After section 13 of the principal Act,the following sections shall be inserted,namely:—"13A.(1)Notwithstanding anything contained in section 12 or section 13, no person shall acquire in respect of any mineral or a group of associated minerals, as may be prescribed, one or more exploration licence, composite licence and production lease, all taken together and covering a total area of more than forty-five minutes latitude by forty-five minutes longitude:Provided that if the Central Government is of the opinion that in the interest of the development of any mineral or industry, it is necessary so to do, it may, for the reasons to be recorded in writing, increase or decrease the said area limit in respect of any mineral or any specified category of deposits of such mineral or such group of associated minerals.(2)For the purposes of this section, a person acquiring by, or in the name of, another person an operating right which is intended for himself, shall be deemed to be acquiring it himself.(3)For the purposes of determining the total area referred to in sub-section (1), the area held under an operating right by a person as a member of a co-operative society, or a company, or a corporation, or a Hindu undivided family, or a partner of a firm, shall be deducted from the area referred to in sub-section (1) so that the sum total of the area held by such person, under an operating right, whether as such member or.partner, or individually, may not, in any case, exceed the total area specified in sub-section (1).
13B.
(1)A composite licence or a production lease granted under section 8, or through competitive bidding under section 12 or section 13, may be transferred by the relevant licensee or lessee, as the case may be, in such manner and subject to such conditions, as may be prescribed, to any person eligible for grant of such licence or lease, under the provisions of this Act:Provided that no such transfer of a composite licence or a production lease shall be made in contravention of any conditions, subject to which such licence or lease was granted.Explanation.—For the purposes of this sub-section, it is clarified that transfer may include one or more production leases, granted pursuant to one composite licence.(2)The provisions of this Act, the rules made thereunder and the terms and conditions of a composite licence or a production lease, shall be binding upon the person to whom such licence or lease, as the case may be, is transferred under sub-section (1).
13C.
(1)On and from the date of commencement of the Offshore Areas Mineral(Development and Regulation) Amendment Act, 2023, auction being the sole method of selection for grant of composite licence or production lease under sections 12 and 13,—(a)all applications received prior to the said date of commencement for grant of composite licence or production lease shall become ineligible;(b)any exploration licence granted prior to the said date of commencement shall become ineligible for grant of production lease over the offshore area covered by such exploration licence.(2)The provisions of sub-section (1) shall be applicable notwithstanding anything contained in thisAct, or any order or direction to the contrary, passed by any court or authority, prior to the commencement of the Offshore Areas Mineral(Development and Regulation)Amendment Act, 2023.".
12. In section 14 of the principal Act, after clause (a), the following clause shall be inserted, namely:—
"(aa) composite licence — one year;".
13. In section 16 of the principal Act, in sub-section (1), for the words "consumed by him from the area covered under the production", the words "consumed from the area covered under his production" shall be substituted.
14. After section 16 of the principal Act, the following section shall be inserted, namely:—
"16A.(1)The Central Government shall, by notification in the Official Gazette, establish a Trust, as a non-profit autonomous body, to be called the Offshore Areas Mineral Trust.(2)The object of the Offshore Areas Mineral Trust shall be to use the funds accrued to it for the following purposes, namely:—(a)research, administration, studies and related expenditure with respect to offshore areas and mitigation of any adverse impact that may be caused to the ecology in the offshore area, due to operations undertaken; or(b)providing relief upon the occurrence of any disaster in the offshore area; or(c)the purposes of exploration in the offshore area; or(d)for the interest and benefit of persons affected by exploration or production operations undertaken; or(e)such other purposes, as may be prescribed.(3)The composition and functions of the Offshore Areas Mineral Trust shall be such as may be prescribed.(4)The funds accrued to the OffshoreAreas Mineral Trust shall be non-lapsable under the public account of India and be administered in such manner as may be prescribed.(5)A lessee shall pay, in addition to the royalty, to the Offshore Areas Mineral Trust, an amount which is equivalent to such percentage of the royalty paid in terms of the First Schedule, not exceeding one-third of such royalty, in such manner as may be prescribed.(6)The entities specified and notified under sub-section (1) of section 5 shall be eligible for funding under the OffshoreAreas Mineral Trust, subject to such conditions as may be specified by the Central Government.".
15. In section 17 of the principal Act, for the words "consumed by him from the area", the words "consumed from the area" shall be substituted.
16. For section 18 of the principal Act, the following section shall be substituted, namely:—
"18. Every lessee shall, in addition to other payments required under this Act, pay to the Central Government in advance, the amount to be paid to the International Seabed Authority in respect of the offshore area granted under his production lease falling in such part of the continental shelf extending beyond two hundred nautical miles, from the baseline from which the breadth of the territorial sea is measured, towards fulfilment of the obligation of the Government of India underArticle 82 of the United Nations Convention on the Law of the Sea, 1982.".
17. After section 19 of the principal Act,the following section shall be inserted,namely:—
"19A. The Central Government shall take necessary steps, as may be prescribed, for the conservation and systematic development of minerals in the offshore areas and for the protection of environment by preventing or controlling any pollution which may be caused by exploration or production operations.".
18. In section 23 of the principal Act,—
(a)in sub-section (1),—(i)for clauses (a) and (b), the following clauses shall be substituted, namely:—"(a) whoever undertakes any reconnaissance operation, or exploration operation, or production operation in an offshore area without a reconnaissance permit, or a composite licence, or an exploration licence, or a production lease, as the case may be, shall be punishable with imprisonment for a term which may extend to five years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both;(b)any permittee or licensee or lessee, who fails to furnish the required data, or information, or document under sub-section (2) of section 5 in the manner provided therein, shall be punishable with imprisonment which may extend to three years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both.Explanation.—For the purposes of clauses (a) and (b), the amount of fine provided shall be in respect of each standard block of such part of the offshore area where such reconnaissance operation, or exploration operation, or production operation is undertaken.";(ii)in clause (d),—(A)for the word "punished", the word "punishable" shall be substituted;(B)for the words "with fine which may extend to fifty lakh rupees", the words "with fine of twenty-five lakh rupees, which may extend to fifty lakh rupees" shall be substituted;(b)in sub-section (2), in the long line, for the words "punished with imprisonment for a term which may extend to five years, or with fine which may extend to fifty thousand rupees", the words "punishable with imprisonment which may extend to five years, or with fine of two lakh rupees, which may extend to five lakh rupees"shall be substituted;(c)after sub-section (2), the following sub-section shall be inserted, namely:—"(2A) Whoever, having been convicted of an offence under sub-section (1) or sub-section (2), is again convicted of an offence under that sub-section, shall, in addition to the punishment provided therefor, be punishable with additional fine which may extend to one lakh rupees for each day during which he continues to commit that offence.";(d)in sub-section (3),—(i)the words "or the rules made thereunder" shall be omitted;(ii)for the word "punished", the word "punishable" shall be substituted;(iii)for the words "with fine which may extend to one crore rupees", the words "with fine of fifty lakh rupees, which may extend to one crore rupees"shall be substituted;(e)after sub-section (3), the following shall be inserted, namely:—"(4) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term which may extend to five years or with fine of fifty lakh rupees, which may extend to one crore rupees, or with both, and in the case of a continuing contravention, with additional fine which may extend to five lakh rupees for every day during which such contravention continues after conviction for the first such contravention.".
19. In section 28 of the principal Act, in sub-section (1), in clause (b), for the words "one lakh rupees and which may extend to ten lakh rupees", the words "five lakh rupees and which may extend to fifty lakh rupees" shall be substituted.
20. After section 34 of the principal Act, the following shall be inserted, namely:—
"34A. The Central Government may, of its own motion and for reasons to be recorded in writing, and in accordance with such terms as may be prescribed, revise any order made by the administering authority or any officer under thisAct or the rules made thereunder.34B.Notwithstanding anything contained in this Act, the Central Government may give such directions to the administering authority, as it may deem necessary, in public interest, strategic interest of the country, conservation and development of mineral, or to carry out the provisions of this Act or the rules made thereunder.34C.The Central Government may, for the purposes of this Act, require—(a)the administering authority; or(b)a permittee or a licensee or a lessee; or(c)any person whom it has reason to believe to be connected with any activity in respect of minerals in the offshore area, to furnish such information as it may deem necessary for, or relevant to, any enquiry or proceeding, under this Act.".
21. In section 35 of the principal Act, in sub-section (2),—
(i)after clause (a), the following clauses shall be inserted, namely:—"(aa) such other authority to whom, all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, is to be furnished by the lessee, licensee or permittee the manner and the period within which, they are to be furnished, under clause (a) of sub-section (2) of section 5;(ab)the terms and conditions subject to which the data, reports, samples or information is to be disseminated pursuant to a sale or otherwise under clause (b) of sub-section (2) of section 5;";(ii)for clause (c), the following clauses shall be substituted, namely:—"(c) the conditions and manner for regulating the grant of mineral concessions in respect of minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 under the first proviso to section 6;(ca)the parameters for adequately establishing existence of mineral resources under the second proviso to section 6;";(iii)clauses (d) to (j) shall be omitted;(iv)after clause (j), the following clauses shall be inserted, namely:—"(ja) the terms and conditions for grant of a composite licence or a production lease to a Government company or corporation under section 8;(jb)the eligibility conditions to be fulfilled, the terms and conditions for conducting competitive bidding, the manner and bidding parameters for grant of a composite licence under sub-section (1) of section 12;(jc)the conditions subject to which extension is to be granted to the licensee for completion of the exploration operations under the first proviso to sub-section (3) of section 12;(jd)terms, milestone and relinquishment requirements for commencing and carrying out exploration operation under sub-section (5) of section 12;(je)the form of application to be made to the administering authority for grant of production lease under sub-section (6) and the procedure therefor under sub-section (8) of section 12;(jf)eligibility conditions to be fulfilled, the terms and conditions for conducting competitive bidding, the manner and bidding parameters for grant of a production lease under sub-section (1) of section 13;7.(jg)the terms and conditions subject to which the production operations shall be commenced and carried out under sub-section (5) of section 13;(jh)the group of associated minerals to be specified under sub-section (1) of section 13A;(ji)the manner and the conditions for transfer of a composite licence or a production lease under section 13B;(jj)such other purposes for which the funds accrued to the Offshore Area Mineral Trust shall be used under sub-section (2) of section 16A;(jk)the composition and functions of the Offshore Area Mineral Trust under sub-section (3) of section 16A;(jl)the manner of administration of funds accrued to the Offshore Area Mineral Trust under sub-section (4) of section 16A;(jm)the manner of payment of amounts to the OffshoreArea Mineral Trust under sub-section (5) of section 16A;";(v)after clause (k), the following clause shall be inserted, namely:—"(ka) the steps necessary to be taken for conservation and systematic development of minerals in the offshore areas and for the protection of environment by preventing or controlling any pollution which may be caused by exploration or production operations under section 19A;";(vi)after clause (p), the following clause shall be inserted, namely:—"(pa) the measures to be taken for preventing illegal mining, transportation, and storage of minerals and for the purposes connected therewith;".
