Lok Sabha Question No. 304 (STARRED), answered on 2023-03-22
Subject: Mining in Sea
Ministry: MINES
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

## GOVERNMENT OF INDIA MINISTRY OF MINES LOK SABHA STARRED QUESTION NO.  304

## ANSWERED ON 22.03.2023

## MINING IN SEA

- *304.   SHRI V. K. SREEKANDAN :

Will the Minister of MINES be pleased to state: (a) whether the Government is considering mining in the sea for placer minerals; (b) if so, whether the Government has invited comments from all stakeholders on the proposed amendment to the Offshore Areas Mineral (Development and Regulation) Act, 2002; (c)  if so, the details thereof; (d)  whether the Government is considering the participation of the private sector in sea mining and if so, the details thereof; (e)  whether  the  Government  has  received  comments  from  various  fishers'  unions from Kerala protesting against the said move; and

- (f)  if so, the details thereof?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- (a) to (f):  A statement is laid on the table of the House.

THE  STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION  NO.  304  REGARDING  'MINING  IN  SEA'  ASKED  BY  SHRI  V.K. SREEKANDAN,  MEMBER  OF  PARLIAMENT  FOR  REPLY  ON  22 ND   MARCH, 2023. (a):   Mining  in  the  sea  for  placer  minerals  is  permitted  under  the  Offshore  Areas Mineral (Development and Regulation) Act, 2002 [OAMDR Act, 2002]. (b)  &  (c):  Ministry  of  Mines  has  invited  comments/suggestions  of  the  stakeholders viz, Central Government Ministries/Departments concerned, State Governments and Union  Territories,  mining  industry,  industry  associations,  general  public,  and  other persons  and  entities  concerned  on  the  proposed  amendment  to  the  OAMDR  Act, 2002. The salient features of the proposed amendments are given in Annexure-I . (d):  Participation of private sector in sea mining is permitted under the OAMDR Act, 2002. However, offshore mining by  private sector is subject to rules framed under the  OAMDR Act, 2002 as well as extant laws, rules and notifications pertaining to other Ministries/Departments like Ministry of Environment, Forest & Climate Change, Department of Atomic Energy, etc. The proposed amendment in the OAMDR Act, 2002  intends  to  introduce  auction  as  a  mode  for  grant  of  operating  rights  in  sea mining.

(e) & (f): Yes, Sir. Comments have been received from various fishers' unions from Kerala  on  the  proposed  amendment  to  the  OAMDR  Act,  2002.  Details  are  at Annexure-II .

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## ANNEXURE-I

## ANNEXURE-I  REFERRED  IN  REPLY  TO  PART  (b)  &  (c)  OF  LOK  SABHA STARRED QUESTION NO. 304 REGARDING 'MINING IN SEA' ASKED BY SHRI V.K. SREEKANDAN, MEMBER OF PARLIAMENT FOR REPLY ON 22 ND  MARCH, 2023.

- i. To  improve  transparency  in  allocation  of  mineral  resources,  provision  has been  made  to  grant  production  lease  only  through  auction  by  competitive bidding.
- ii. Introduce the provision for grant of composite licence, i.e., exploration licencecum-production  lease,  which  is  a  two  stage  operating  right  granted  for  the purpose of undertaking exploration operation followed by production operation.  Composite  licence  shall  also  be  granted  only  through  auction  by competitive bidding.
- iii. Provide that rights of holder or applicant of operating rights (reconnaissance permit, exploration licence or production lease) granted prior to the commencement of the proposed Amendment Act shall lapse on commencement of the proposed Amendment Act. The provision will resolve the  pending  litigations  stalling  the  sector.  It  will  enable  allocation  of  blocks containing  atomic  minerals  to  PSUs  and  allocation  of  blocks  not  containing atomic minerals through auction to PSUs and private entities.
- iv. To  remove  discretion  in  grant  of  renewals,  the  provisions  for  renewal  of production leases have been removed and the period of production lease has been proposed to be increased to 50 years on lines similar to the MMDR Act.
- v. 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.
- vi. The size of a standard block (minimum area) to be granted has been reduced to one minute latitude by one minute longitude (approx. 3.43 square km.) from five minutes latitude by five minutes longitude (approx. 85.75 square km.) so that the offshore areas for grant of concession are comparable with provisions in  other  jurisdictions  such  as  Australia  (one  minute  latitude  by  one  minute longitude) and Philippines (half minute latitude by half minute longitude).
- vii. Limit  on  area  has  been  introduced.  A  person  cannot  acquire  more  than  45 minutes  latitude  by  45  minutes  longitude  in  respect  of  any  mineral  or prescribed group of associated mineral under one or more exploration licence, composite licence and production lease (all taken together).
- viii. To ensure availability of funds for exploration, mitigation of adverse impact of offshore  mining,  disaster  management,  research,  etc.  provision  has  been made for setting up of a non-lapsable Offshore Areas Mineral Trust which will maintain a fund under the Public Account of India. This will be funded by an additional  levy,  not  exceeding  one  third  of  the  royalty  on  the  production  of minerals. The exact rate of additional levy  will  be  prescribed by  the  Central Government.
- ix. Provision has been proposed to grant mineral concession without competitive bidding  to  Government  companies  or  corporations  on  payment  of  such amount  as  may  be  prescribed  by  the  Central  Government  in  the  mineral bearing areas reserved by the Central Government. This provision is similar to provision of area reservation under the MMDR Act.
- x. To  promote  ease  of  doing  business,  a  provision  has  been  made  for  easy transfer of exploration licence, composite licence or production lease.
- xi. The Central Government has been granted powers to revise the order made by Administering Authority, issue directions and call for information from the Administering Authority, in public interest.
- xii. Provision  has  been  proposed  for  grant  of  exploration  licence  or  production lease  only  to  Government,  Government  Company  or  Corporation  in  case grade of such mineral in such area is equal to or above a threshold value.
- xiii. Scope  of  power  of  premature  termination  has  been  expanded  to  include 'public interest', 'strategic interest of the country' or 'any other reason'.
- xiv. Increased fine to 5 lakh rupees per standard block which may extend to 10 lakh rupees from existing fine of upto 50 thousand rupees per standard block for illegal mining and also increased fine for other offences.
- xv. The Central Government authorized to address any difficulty that may arise while implementing the Amendment during a period of two years.

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## ANNEXURE-II

ANNEXURE-II  REFERRED  IN  REPLY  TO  PART  (e)  &  (f)  OF  LOK  SABHA STARRED QUESTION NO. 304 REGARDING 'MINING IN SEA' ASKED BY SHRI V.K. SREEKANDAN, MEMBER OF PARLIAMENT FOR REPLY ON 22 ND  MARCH, 2023.

|   S.No. | List of various fishers' unions from Kerala from whom comments received   |
|---------|---------------------------------------------------------------------------|
|       1 | Akhilya Kerala Dheevara Sabha                                             |
|       2 | Akhilya Kerala Malsya Thozilali Federation                                |
|       3 | Kerala Matsyathozhilali Aikyavedi (TUCI)                                  |
|       4 | Fishermen Welfare Society, Moothakara, Kollam, Kerala                     |
|       5 | Swathanthra Mathsya Thozhilali Federation, Kerala                         |
|       6 | All India Fishermen Congress, Allappy, Kerala                             |
|       7 | Matsya Thozhilali Federation (STU), National Organizing Committee         |
|       8 | Kerala State Fish workers Federation, AITUC                               |
|       9 | Coastal Area Development Agency for Liberation (CADAL), Kerala            |
|      10 | Karimanal Khnana Virudhae Kopanasamithi, Alappuzha(Dt), Kerala            |
|      11 | National Fisherman Forum, Kerala                                          |