The Rajya Sabha has passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 on 3 August, 2023. The Bill which seeks to make amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002 (‘OAMDR Act’) was passed by Lok Sabha on 01 August, 2023, and will now be sent to the President of India for assent.

The proposal includes amendment to bring major reform in allocation of operating rights in offshore areas by introducing auction. Two types of operating rights are to be granted to private sector through auction by competitive bidding, that is, production lease and composite licence. Renewal of production leases provision has been removed and provides for a fixed period of 50 years.

Further, a limit has been introduced on the area a person can acquire in respect of any mineral or a group of associated minerals in the offshore, under one or more operating rights taken together. In case of atomic minerals, provision has been made for operating rights to be granted to PSUs in the mineral bearing areas reserved by the Central Government.

Additionally, to promote ease of doing business, a provision has been made for easy transfer of composite licence or production lease. A timeline has also been proposed for commencement of production and dispatch after the execution of production lease.