Lok Sabha Question No. 4289 (UNSTARRED), answered on 2025-03-26
Subject: Sea Sand Mining Tender
Ministry: MINES
Asked by: Shri Hibi Eden

## 4289.SHRI HIBI EDEN:

Will the Minister of MINES be pleased to state:

- (a) whether the Government intends to revise the tendering process to mandate an Environmental Impact Assessment (EIA) before awarding mining contracts rather than allowing it to be conducted afterward, if so, the details thereof and if not, the reasons therefor;
- (b)  whether  the  Government  considers  it  appropriate  to  award  a  sea  sand  mining tender before conducting a detailed EIA, if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government will take steps to ensure that the EIA is conducted by an independent and neutral agency instead of the firm/organization/individual that wins the mining bid, if so, the details thereof and if not, the reasons therefor;
- (d)  whether  the  Government  will  consider  halting  or  reviewing  the  mining  tender process until a comprehensive and transparent EIA is conducted, if so, the details thereof and if not, the reasons therefor; and
- (e)  whether  the  Government  acknowledges  the  risk  that  mining  companies  may manipulate EIAs in their favour, if not, the details thereof?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a) to (e): The Central Government has launched the first tranche of auction of 13 offshore blocks on 28.11.2024 for grant of composite licence, i.e. exploration licencecum-production lease, in accordance with the Offshore Areas Minerals (Development and Regulation) Act, 2002.

Before  notifying  the  above  blocks  in  offshore  areas,  the  Central  Government  had consulted several key Ministries, including the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Department of Fisheries under the Ministry of Fisheries, Animal Husbandry, and Dairying, among others, as mandated under Rule 5 of the Offshore Areas Operating Right Rules (OAORR), 2024.

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 4289

ANSWERED ON 26.03.2025

## SEA SAND MINING TENDER

Further,  the  preferred bidder,  selected  in  auction (or  tendering)  process,  becomes entitled to grant of composite licence, subject to fulfilment of various conditions under the Act and the Rules made thereunder. As per the provisions of the Offshore Areas Mineral (Auction) Rules, 2024, before execution of an operating right (i.e. exploration licence,  production  lease,  etc.),  the  bidders  are  required  to  obtain  all  consents, approvals, permits, no-objections and the like as may be required under applicable laws  for  commencement  of  exploration  or  production  operations.  Approval  of exploration plan and production plan are some of the necessary clearances. Thus, auction is only a first step, and the preferred bidder cannot commence exploration or production before obtaining the necessary clearances and the licence or lease, as the case may be.

There are adequate provisions in the Act and the Rules made thereunder to safeguard ecology, bio-diversity and protecting the interests of fishermen. As per the provisions of  the  Offshore  Areas  Mineral  Conservation  and  Development  Rules,  2024,  no production operations shall be undertaken except in accordance with a production plan. The  production  plan, inter-alia, includes  environment  management  plan indicating baseline information, Environment Impact Assessment (EIA) and mitigation measures. Comprehensive provisions are available under the Act and the Rules to carry out EIA before commencing production to safeguard environment, biodiversity and the interest of fishing community. Approval of production plan is necessary before grant of production lease.

In case of auction of a mineral block onshore also, the EIA is carried out by the project proponent (preferred bidder) only under the Environment Protection Act, 1986 as EIA and  mitigation  measures  depend  on  various  factors,  such  as,  mining  method proposed, geology and mineral occurrence in the block, machines and infrastructure proposed in the block, etc. Similar provisions have been made in the Offshore Area (Development  and  Regulation)  Act,  2002  and  Rules  made  thereunder.  Adequate safeguards are  in  place  against  any  manipulation  by  the  project  proponents  while carrying out EIA.

In view of above, need for reviewing the mining tender process does not arise.

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