OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) ACT, 2002
(1) This Act may be called the Offshore Areas Mineral (Development and Regulation) Act, 2002.
(2) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint.
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1. Effective from 15.01.2010 vide Order No. SO338(E) dated 11.02.2010.
It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals in offshore areas to the extent hereinafter provided.
(1) This Act shall apply to all minerals in the offshore areas including any mineral prescribed by notification under clause (g) of sub-section (1) of section 2 of the Atomic Energy Act, 1962 (33 of 1962) except mineral oils and hydrocarbons related thereto.
(2) Except as otherwise provided in this Act, the provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force in the offshore areas.
In this Act, unless the context otherwise requires,--
(a) "administering authority" means an authority notified, in the Official Gazette, by the Central Government for the purposes of this Act;
(b) "atomic minerals" means the minerals included in atomic minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957);
(c) "Coast Guard" means the Coast Guard constituted under the Coast Guard Act, 1978 (30 of 1978);
(d) "exploration licence" means a licence granted under section 12;
(e) "exploration operation" means any operation undertaken for the purpose of exploring, locating or proving the mineral deposits;
(1) No person shall undertake any reconnaissance operation, exploration operation or production operation in the offshore areas, except under and in accordance with the prescribed terms and conditions of a reconnaissance permit, exploration licence or production lease granted under this Act and the rules made thereunder:
Provided that nothing in this sub-section shall apply to any reconnaissance operation or exploration operation undertaken by the Geological Survey of India, Atomic Minerals Directorate of Exploration and Research, the Chief Hydrographer to the Government of India of Naval Hydrographic Office of the Indian Navy, the National Institute of Oceanography, the National Institute of Ocean Technology of Department of Ocean Development of the Government of India, or any other agency duly authorised in this behalf by the Central Government.
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The Central Government shall not grant an operating right to any person unless such person--
(a) is an Indian national, or a company as defined in section 3 of the Companies Act, 1956 (1 of 1956); and
(b) satisfies such conditions as may be prescribed:
Provided that no production lease for atomic minerals or prescribed substances may be granted without consultation with the Department of the Government of India dealing with the Atomic Energy.
(1) Where the Central Government, after consultation with the administering authority, is of the opinion that it is expedient in the interest of development and regulation of offshore mineral resources, preservation of natural environment and prevention of pollution, avoidance of danger to public health or communication, ensuring safety of any offshore structure or conservation of mineral resources, the Central Government may prematurely terminate any operating right in respect of any mineral in any offshore area or part thereof.
(2) No order for premature termination of operating right under sub-section (1) shall be made except after giving the holder of operating right a reasonable opportunity of being heard.
(3) Where the holder of any operating right fails to commence operation within the period specified in section 14 or discontinue
(1) The Central Government may, from time to time, by notification in the Official Gazette, reserve any offshore area not already held under any operating right, for the purposes of the Central Government and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area shall be reserved.
(2) The Central Government may, from time to time, by notification in the Official Gazette, dereserve, any area reserved under sub-section (1), in the interest of development and regulation of the offshore mineral.
(1) The Central Government may, in the public interest, by order in writing and communicated to the permittee, licensee or lessee, as the case may be, close any area either in part or whole, covered under any operating right, for the preservation of natural environment and prevention of pollution, or to avoid danger to public health, or communication, or to ensure safety of any offshore structure or platform, or for the conservation of offshore mineral, or for national security or for any other strategic consideration.
(2) Any area, either in part or whole closed under sub-section (1) and included in any operating right, shall, from the date of such order, be deemed to be excluded for the purposes of the operating right and the holder of the operating right shall not undertake any operation in the area covered under such order from the date specified therein.
(1) Within six months from the date of commencement of this Act, and subsequently at such times as may be considered necessary in this behalf by the administering authority, it shall, by notification in the Official Gazette, declare the parts of the offshore areas which shall be available for grant of reconnaissance permit, exploration licence or production lease.
(2) Any application for the grant of reconnaissance permit, exploration licence or production lease in respect of any area not covered by a notification issued under sub-section (1) shall be deemed to be premature and no application shall be entertained therefor.
(3) Operating rights shall be granted in standard block of five minutes longitude by five minutes latitude and such grant may cover more than one standard block which shall be contiguous.
(1) The administering authority may grant a non-exclusive reconnaissance permit to any person eligible under section 6 for grant of operating right.
(2) The period for which a reconnaissance permit may be granted under sub-section (1) shall be for a period specified in such permit which shall not exceed two years.
(3) A reconnaissance permit granted under sub-section (1) may be renewed for a period not exceeding two years if, after a review of the progress made during the period of such grant, the administering authority is satisfied that a further period is necessary to complete the reconnaissance operation.
(4) The area that may be granted under one reconnaissance permit shall not exceed a block of two degree latitude by two degree longitude.
(5)
(1) The administering authority may grant an exploration licence to any person who--
(a) is eligible under section 6 for grant of operating right;
(b) produces, to the satisfaction of the administering authority, evidence that such person possesses the requisite technical ability and financial resources to undertake exploration operation based on such scientific parameters, as may be prescribed;
(c) submits a work programme for the area applied for, prepared in such manner and supported by such data as may be prescribed, setting forth the activities proposed to be carried out during the period of the exploration licence including the intended exploration schedule and methods to be used, an estimated schedule of expenditure, measures to prevent pollution and protect the environment and to monit
(1) The administering authority shall grant a production lease to any person who--
(a) is eligible under section 6 for grant of operating right;
(b) produces, to the satisfaction of the administering authority, evidence that such person possesses the requisite technical ability and financial resources to undertake production operation based on such scientific parameters as may be prescribed;
(c) submits a work programme for the systematic development of the mineral deposits of the area applied for, prepared in such manner and supported by such data as may be prescribed and obtained through exploration operation, setting forth the activities proposed to be carried out during the period of the lease including the resources assessment of the area, the intended schedule of commercial production, m
A holder of operating right shall commence operation within the period specified below after the grant of the operating right and shall thereafter conduct such operation in proper, skilful and workman-like manner, as follows:--
(a) reconnaissance permit -- six months;
(b) exploration licence -- one year; and
(c) production lease -- two years.
Any person or agency authorised by notification in the Official Gazette, by the Central Government in this behalf, may conduct survey, research, diving operations and scientific investigations in the offshore areas, including any area covered under operating rights and the permittee, licensee or lessee, as the case may be, shall permit such person or agency to undertake the said investigations in their respective areas and to render such assistance as may be necessary for conduct of the investigations.
(1) A lessee shall pay royalty to the Central Government in respect of any mineral removed or consumed by him from the area covered under the production lease, at the rate for the time being specified in the First Schedule in respect of that mineral.
(2) The Central Government may, by notification in the Official Gazette, amend the First Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification:
Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years.
(1) A lessee shall pay to the Central Government, every year, fixed rent in respect of the area covered under the production lease, at the rate for the time being specified in the Second Schedule:
Provided that where the lessee becomes liable under section 16 to pay royalty for any mineral removed or consumed by him from the area covered under such lease, he shall be liable to pay either such royalty or the fixed rent in respect of that area, whichever is greater.
(2) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which fixed rent shall be payable in respect of any area covered under a production lease and such enhancement or reduction shall take effect from such date as may be specified in the notification:
Every lessee, whose production operation extends beyond two hundred nautical miles from the baseline from which the breadth of the territorial sea is measured, shall pay in advance, in addition to other payments required under this Act, to the Central Government, the amount to be paid to the International Seabed Authority towards fulfilment of obligation of the Central Government under Article 82 of the United Nations Convention on Law of the Sea, 1982.
(1) The permittee, licensee, lessee or any other person undertaking the reconnaissance operation or exploration operation or production operation under sub-section (1) of section 5 or any agency undertaking the reconnaissance operation or exploration operation under the proviso to sub-section (1) of the said section shall be responsible to ensure that the concerned operation is conducted with due regard to the safety and health of persons including divers and safety and security of property engaged in the operation.
(2) The Central Government may, by notification in the Official Gazette, declare safety zones in respect of offshore activities as may be necessary and prescribe the norms for regulating the safety and health of persons and safety of property engaged in operations authorised under this Act, the implementation thereof and matters connected therewith.
(1) Every holder of the operating rights shall carry out the operations authorised under this Act subject to the provisions of this Act and the rules made thereunder and any other law and the rules made thereunder, for the time being in force for the prevention and control of pollution and protection of marine environment.
(2) Every holder of an operating right shall be liable for any pollution of, or damage to, the marine environment resulting from his activities relating to his operating right in the offshore areas and shall pay such compensation, as may be determined by the administering authority keeping in view the extent of pollution or damage, as the case may be.
(3) The Central Government may prescribe measures to be taken for prevention and control of pollution and protection of marine environment due to activities in the offsho
(1) The permittee, licensee or lessee shall comply with such directions as the Central Government or the administering authority may issue, from time to time, for the conservation and systematic development of offshore minerals, prevention of pollution, protection of marine environment, prevention of coastal erosion or prevention of danger to life or property including the marine life.
(2) The permittee, licensee or lessee shall comply with such directions as may be issued from time to time by the competent authority or Coast Guard regarding national security, safety and national integrity.
Explanation.-- "competent authority" means the competent authority appointed for the purposes of sub-section (2) by the Central Government in the Ministry dealing with defence of India.
(1) For the purpose of ascertaining the position of the working, actual or prospective, of any mine or abandoned mine, or for any other purpose connected with this Act or the rules made thereunder, any officer authorised, by the Central Government in this behalf, by general or special order, may--
(a) enter and inspect, at all reasonable times, any mine;
(b) weigh, draw samples or take measurements of the stocks of minerals recovered from any mine;
(c) survey and take samples and measurements in any such mine;
(d) examine any document, book, register or record in the possession or power of any person having the control of, or connected with, any mine and place marks of identification thereon and take extracts from, or make copies of, such document,
(1) (a) Whoever undertakes any reconnaissance operation, exploration operation or production operation in offshore area without any permit, licence or lease, as the case may be, granted under this Act shall be punished with imprisonment for a term which may extend to five years, or with fine which may extend to fifty thousand rupees, or with both.
(b) A permittee, licensee or lessee who does not furnish any data, information or document under sub-section (2) of section 5, in the manner provided therein, shall be punished with imprisonment which may extend to three years, or with fine which may extend to twenty-five thousand rupees, or with both.
(c) Any vessel, together with its gear, boats, stores and cargo, used or employed in violation of section 5, along with any mineral recovered or processed in violation of that section, if any, sh
(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a company and it is proved that the offence has been committed with the consent
Notwithstanding anything contained in other law for the time being in force, any person committing an offence under this Act or any rule made thereunder or under any of the enactment extended under this Act or under the rules made thereunder shall be tried for the offence in such place as the Central Government may, by general or special order published in the Official Gazette, direct in this behalf.
No prosecution for an offence committed under this Act shall be instituted except with the previous sanction of the Central Government or such officer or authority as may be authorised by the Central Government, by order in writing in this behalf.
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), all offences under this Act shall be triable by the Court of Session.
(1)A person to whom a permit, licence or lease is granted under this Act,--
(a)contravenes the general terms and conditions imposed by the rules made underthis Act shall be liable to pay to the Central Governmentan amount which shall not be less than five lakh rupees and whichmay extend to one crore rupees;
(b)contravenes any particular terms and conditions applicable only in case of suchpermittee, licensee or lessee as the case may be, shall also be liable, apartfrom the liability under clause (a), to pay additional amount to the CentralGovernment which shall not be less than one lakh rupees and whichmay extend to ten lakh rupees.
(2)No court or other authority except the authorised officer designated by the Central Government for this purpose, shallhave jurisdiction to hear and decide the ca
The Central Government may, by notification in the Official Gazette,--
(a) extend with such restrictions and modifications as it thinks fit, any enactment for the time being in force in India or any part thereof to the offshore area or any part thereof; and
(b) make such provisions as it may consider necessary for facilitating the enforcement of such enactment,
and any enactment so extended shall have effect as if the offshore area or the part thereof, as the case may be, is a part of the territory of India.
(1) Any offence punishable under this Act may, either before or after the institution of the prosecution, be compounded by the administering authority or any other officer authorised by the Central Government with respect to that offence, on payment for credit to that Government of such sum as that administering authority or officer, as the case may be, may specify:
Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offence so compounded.
(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded and the offender, if in custody, shall be released forthwith.
Any licence fee, royalty, fixed rent or other sum due to the Central Government under this Act or rules made there under or under the terms and conditions of a reconnaissance permit, exploration licence or production lease may, on a certificate issued by the administering authority, be recovered in the same manner as if it were an arrear of land revenue and every such sum together with the interest due thereon, shall be the first charge on the assets of the permittee, licensee or lessee, as the case may be
The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act or any rule made thereunder may, in relation to such matter and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate to that Government as may be specified in the notification.
No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule made thereunder.
(1) Subject to the provisions of sub-section (2), any person aggrieved by an order made by the administering authority or any officer under this Act or the rules made thereunder may prefer an appeal against such order to the Central Government.
(2) Every such appeal shall be preferred within prescribed period from the date on which the impugned order was made:
Provided that the Central Government may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within such prescribed period, permit the appellant to prefer the appeal within a further period as may be prescribed.
(3) On receipt of any such appeal, the Central Government shall, after giving the parties to the appeal a reasonable opportunity of being heard and after making such inquiry as it d
(1)The Central Government may, by notification in the Official Gazette, make rulesfor the purposes of this Act.
(2)Without prejudice to the generality of the foregoing power, such rules mayprovide for all or any of the following matters, namely:--
(a)the terms and conditions of a reconnaissance permit, exploration licence orproduction lease under sub-section (1) of section 5;
(b)conditions for grant of operating right under clause (b) of section 6;
(c) substancesto be prescribed under proviso to section 6;
(d)the requisite technical ability and financial resources to undertakeexploration operation on scientific parameters under clause (b) of sub-section(1)of section 12;
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Notwithstanding anything to the contrary contained in this Act or any rule made thereunder, the Central Government may, if it is of the opinion that in the interests of the offshore mineral development, it is necessary so to do, by order and for reasons to be recorded in writing, authorise in any specific case the grant, renewal or transfer of any operating right to any person on such terms and conditions as it may specify in this behalf in such order.
The administering authority or any other officer shall be deemed, while acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of the Indian Penal Code.
(1) If any difficulty arises in giving effect to the provisions of this Act, or of any of the enactments extended under section 29, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or, as the case may be, of such enactment, as may appear to it to be necessary or expedient for removing the difficulty:
Provided that no order shall be made under this section,--
(a) in the case of any difficulty arising in giving effect to any provision of this Act, after the expiry of three years from the commencement of such provision;
(b) in the case of any difficulty arising in giving effect to the provisions of any enactment extended under section 29, after the expiry of three years from the extension of such enactmen
THE FIRST SCHEDULE
[See section 16(1)]
RATES OF ROYALTY
1. Brown ilmenite (leucoxene), Ilmenite, Rutile and Zircon Two per cent. of sale price on ad valorem basis.
2. Dolomite Forty rupees per tonne.
3. Garnet Three per cent. of sale price on ad valorem basis.
4. Gold One and half per cent. of London Bullion Market Association price (commonly referred to as "London Price") chargeable on the contained gold metal in ore produced.
5. Limestone and Lime mud Forty rupees per tonne.
6. Manganese Ore Three per cent. of sale price on ad valorem basis.
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THE SECOND SCHEDULE
[See section 17(1)]
RATES OF FIXED RENT
Rates of fixed rent in rupees per standard block per annum
Size 1st Year of the lease 2nd to 5th year of the lease 6th to 10th year of the lease 11th year of the lease and onwards
Standard block of 5 minutes longitude by 5 minutes latitude. Nil Rupees 50,000 Rupees 1,00,000 Rupees 2,00,000
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