Daily Current Affairs : 4-August-2023
In recent news, a significant development has taken place in India’s legislative landscape with the passage of the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 by the Parliament. This amendment holds the potential to bring about transformative changes in the realm of offshore mineral exploration and allocation. The bill seeks to utilize the vast national wealth hidden beneath the sea’s surface to foster comprehensive development across the country.
A Paradigm Shift in Allocation
The proposed amendment is geared towards revolutionizing the method of allocating operating rights within offshore areas. The existing approach has been marred by challenges and inefficiencies, prompting the need for a fresh perspective. With this amendment, a new system of auctioning will be introduced to determine the allocation of operating rights, ensuring a more transparent and equitable distribution.
Catalyzing National Development
At its core, the amendment is driven by the aspiration to leverage the immense potential of offshore mineral resources for the greater good of the nation. India’s coastline holds a treasure trove of valuable minerals, and unlocking these resources could significantly contribute to the country’s economic growth and infrastructural advancement.
Addressing Historical Bottlenecks
The impetus behind these reforms is the recognition that the previous efforts at offshore block allocation were hindered by legal complexities and unresolved disputes. These bottlenecks underscored the need for a robust legal framework that could streamline the allocation process and mitigate potential litigations.
Salient Features of the Amendment
The Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 introduces several key provisions that mark a departure from the previous norm:
- Composite Licensing Regime: The amendment ushers in a novel concept of composite licensing. Under this framework, an explorer not only gains the right to explore but also obtains the privilege to develop and mine the mineral resources under a unified license.
- Auction Mechanism: The government is poised to adopt an auction-based approach for awarding production leases for offshore minerals. This move is set to enhance transparency and competition in the allocation process.
- Strategic Minerals Allocation: Certain critical and sensitive minerals, including atomic minerals, are designated to be allocated exclusively to government entities or Public Sector Undertakings (PSUs).
- Extended Validity: Production leases, as stipulated by the amendment, can extend up to 30 years, with the possibility of a 20-year renewal.
- Offshore Areas Mineral Trust: To ensure the sustainable management of funds for exploration, disaster management, and research, a non-lapsable Offshore Areas Mineral Trust will be established under the Public Account of India.
- Reserved Areas Provision: The bill empowers the government to reserve offshore areas that are not currently subject to any operating rights.
- Strengthened Penalties: Recognizing the need for stringent deterrence, the proposed amendment suggests heightened fines for illegal mining and related offenses.
- Facilitating Ease of Business: The amendment seeks to streamline the allocation of offshore minerals by making auction the primary mode for granting production leases. This aims to promote transparency and efficiency.
Advantages for India’s Progress
The Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 carries with it a plethora of benefits that can significantly propel India’s growth trajectory:
- Strategic Resource Utilization: The amendment aligns with India’s aspiration to tap into its maritime resources to fuel economic growth, asserting its dominance over territorial waters.
- Public-Private Participation: By facilitating private sector involvement, the amendment paves the way for advanced technologies and expertise to be harnessed in the exploration sector.
- Economic Impetus: The extraction of offshore minerals holds the potential to infuse the economy with newfound vigor, contributing to India’s quest for high-growth status.
Important Points:
- Recent Development: The Indian Parliament has passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023.
- Allocation Reform: The amendment introduces a new method of allocation of operating rights through auctions for offshore mineral exploration.
- National Development: The primary objective is to utilize offshore mineral wealth for the overall progress of the country.
- Previous Challenges: The offshore mining sector faced issues due to lack of legal framework and pending litigations over block allocations.
- Composite Licensing: The new amendment brings in a composite licensing regime, allowing explorers to both explore and mine under a single license.
- Auction Introduction: Production leases for offshore minerals will be awarded through auctions to enhance transparency and fairness.
- Atomic Minerals: Critical and sensitive minerals, including atomic minerals, will be allocated only to government entities or PSUs.
- Lease Validity: Production leases can last up to 30 years, with an option for renewal for an additional 20 years.
- Offshore Areas Mineral Trust: A non-lapsable trust will be established to manage funds for exploration, disaster management, and research.
- Reserved Areas: The government can designate offshore areas without operating rights as reserved for future allocations.
- Strengthened Penalties: Higher fines proposed for illegal mining and related offenses to deter unlawful activities.
- Ease of Business: The amendment promotes transparency by granting production leases primarily through auction.
- Strategic Resource Utilization: The amendment aligns with India’s goal to leverage maritime resources for economic growth and territorial control.
- Public-Private Participation: Private sector involvement will bring advanced technology and expertise to the exploration sector.
- Economic Impetus: Extracting offshore minerals can significantly contribute to India’s economic growth and development.
Why In News
Recently, in a significant legislative achievement, the Parliament successfully passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023, marking a pivotal step towards fostering sustainable growth in the country’s mineral sector. This amendment empowers the government to regulate offshore mineral exploration and extraction, ensuring responsible utilization of marine resources while promoting technological innovation and environmental preservation.
MCQs about India’s Offshore Mineral Amendment Bill 2023
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What is the primary objective of the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023?
A. Introducing a new method of fishing in offshore areas.
B. Facilitating foreign investment in offshore mining.
C. Utilizing offshore mineral wealth for overall national development.
D. Expanding territorial waters for strategic control.
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Which key provision is introduced by the amendment to enhance transparency in the allocation of offshore minerals?
A. Composite licensing regime.
B. Allocation through negotiations.
C. Direct allocation to private entities.
D. Allocation based on historical data.
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Which minerals will be allocated exclusively to government entities or Public Sector Undertakings (PSUs) under the amendment?
A. All offshore minerals.
B. Atomic minerals.
C. Critical and sensitive minerals.
D. Non-critical minerals.
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What is the purpose of establishing the non-lapsable Offshore Areas Mineral Trust under the Public Account of India?
A. To fund political campaigns.
B. To support offshore fishing activities.
C. To manage funds for exploration, disaster management, and research.
D. To invest in foreign offshore mining projects.
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