Today's Headlines - 07 August 2023
Offshore mining and mineral auctions
GS Paper - 2 (Polity)
In a significant step toward exploiting India's offshore resources, the Council of States passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill (OAMDR), 2023. The Bill represents a transformative change for the offshore mining sector, which has remained largely inactive since the enactment of the OAMDR Act in 2002.
More about the Bill
It aims to increase transparency in the allocation of minerals found in the country's offshore basins, permitting the granting of production leases exclusively through auctions and reserving some allocations for government entities and public sector units (PSUs).
The passage of the Bill marks a historic milestone, unlocking India's vast mineral-rich offshore areas.
This move promises strategic benefits, strengthening the nation's territorial waters, which have been frequently threatened by neighboring countries.
The extraction of minerals from these areas is expected to bolster India's strategic position further.
Auctions as primary means
The Bill stipulates a fixed 50-year production lease for offshore minerals. Under this new legislation, the government plans to introduce auctions as the primary means to award production leases for offshore minerals.
The amendment enables the granting of production leases to the private sector solely through competitive bidding auctions.
Under the composite licensing system, explorers will also have the right to develop and mine minerals under a single license.
The Bill introduces a four-year timeline for the start of production and dispatch following the execution of a composite license or production lease.
It also establishes a two-year timeline (extendable by one year) for the resumption of production and dispatch after a discontinuation.
#upsc #news #headline #offshore #mineral #polity #resources #development #regulation #OAMDR #bill #PSU #india #strategic #water #nations #territorial #award #production #lease #legislation #singlelicense #compositelicensing #historic #milestone #amendment
Offshore mining and mineral auctions
GS Paper - 2 (Polity)
In a significant step toward exploiting India's offshore resources, the Council of States passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill (OAMDR), 2023. The Bill represents a transformative change for the offshore mining sector, which has remained largely inactive since the enactment of the OAMDR Act in 2002.
More about the Bill
It aims to increase transparency in the allocation of minerals found in the country's offshore basins, permitting the granting of production leases exclusively through auctions and reserving some allocations for government entities and public sector units (PSUs).
The passage of the Bill marks a historic milestone, unlocking India's vast mineral-rich offshore areas.
This move promises strategic benefits, strengthening the nation's territorial waters, which have been frequently threatened by neighboring countries.
The extraction of minerals from these areas is expected to bolster India's strategic position further.
Auctions as primary means
The Bill stipulates a fixed 50-year production lease for offshore minerals. Under this new legislation, the government plans to introduce auctions as the primary means to award production leases for offshore minerals.
The amendment enables the granting of production leases to the private sector solely through competitive bidding auctions.
Under the composite licensing system, explorers will also have the right to develop and mine minerals under a single license.
The Bill introduces a four-year timeline for the start of production and dispatch following the execution of a composite license or production lease.
It also establishes a two-year timeline (extendable by one year) for the resumption of production and dispatch after a discontinuation.
#upsc #news #headline #offshore #mineral #polity #resources #development #regulation #OAMDR #bill #PSU #india #strategic #water #nations #territorial #award #production #lease #legislation #singlelicense #compositelicensing #historic #milestone #amendment