Bill cleared for 50-year lease for offshore minerals

A Bill to provide a fixed 50-year production lease for offshore minerals was passed by the Rajya Sabha on Thursday amid a walkout by Opposition members over the situation in violence-hit Manipur.
When the Upper House reassembled for the post-lunch session, Coal and Mines Minister Pralhad Joshi moved the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 for consideration, even as the Opposition parties insisted on a discussion on Manipur.
The Bill to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002 was passed by the Lok Sabha on Tuesday.
The Bill seeks to provide a fixed 50-year production lease for offshore minerals. Under this legislation, the government aims to introduce auctions as the route to award production leases for offshore minerals.
It aims at introducing a four-year timeline for the commencement of production and dispatch after the execution of composite licence or production lease, and a timeline of two years (extendable by one year) for re-commencement of production and dispatch after discontinuation.
According to the Statement of Objects and Reasons of the Bill, it proposes to remove the provision for renewal of production lease and provide a fixed period of 50 years for production lease similar to the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.