The Central government is initiating plans for offshore mining of non-atomic minerals to the private sector. The mines ministry has notified draft amendments to the Offshore Area Mineral (Development & Regulation) Act, 2002 (OAMDR Act), which will pave the way for private sector participation in mining of maritime resources in India’s territorial waters along its 7,517-km coastline.

The proposed changes are towards creating a transparent mechanism for allocation of concessions. It is proposed that production leases can be granted through auction to private sector and state-controlled firms, besides a composite exploration-cum-production licence, along with lease period of 50 years to attract investments from private sector, as a departure from the renewal regime.

However, atomic minerals will remain under the monopoly of state-owned companies. A competitive bidding process is to be used for selecting the joint venture (JV). A JV model with public sector units (PSUs) having the majority stake is also under consideration.

The size of standard block production lease area has been restricted to ensure due regulation, in keeping with global concession agreements.

The move will contribute to new age sectors such as renewable energy and will reduce India’s import dependence.

India’s coastline runs across nine states and four Union Territories which offers huge potential for mineral mining.