The government has introduced the Offshore Areas Mineral Trust Rules, 2024, establishing the first-ever framework to oversee mineral exploration and production in India’s offshore areas. Under the new rules, holders of production leases of offshore mines are required to contribute to the Trust by paying 10 per cent of their royalty payments to the Central Government. This sum will be deposited in the Public Account of India, providing a financial backbone for the Trust’s initiatives, the rules stated.
The Rules come ahead of the Centre’s scheduled launch of the inaugural round of offshore mineral auctions. The Union Ministry of Mines in March had expressed plans to auction the first batch of offshore mineral blocks by July of this year. The Rules lay the foundation for the ministry to conduct the inaugural auction.
The Ministry of Mines has identified 10 offshore mineral blocks for potential auction and is currently engaged in inter-ministerial consultations to secure the required approvals for conducting the auctions at the earliest opportunity.
The regulations set specific exploration norms for a variety of deposits and minerals, including construction-grade silica sand, non-construction-grade calcareous sand, calcareous mud, phosphatic sediments, deep-sea minerals, rare earth element (REE) minerals, hydrothermal minerals, and nodules.
According to the Rules published on August 10, the primary objective of the Trust is to promote sustainable exploration while ensuring environmental conservation and community welfare.
The Trust is tasked with a wide array of responsibilities, including conducting research, studies, and administration to mitigate any adverse ecological impacts from offshore operations. It is also responsible for providing disaster relief, promoting exploration activities, and supporting affected communities.
The Trust will also focus on supporting innovation and technological advancement. It aims to fund institutions, startups, and small and medium enterprises to explore and refine offshore minerals. Additionally, the Trust will facilitate detailed geological and geophysical surveys and promote advanced exploration methods, such as subsea surveys and the use of specialised submersibles.
Promoting collaboration and conservation
In addition to its exploration and production activities, the Trust is entrusted with promoting international cooperation in technology and knowledge exchange. It will organise national and international workshops and seminars on geological and environmental studies in offshore areas.
The Trust will also emphasise marine conservation, aiming to protect marine ecosystems and communities dependent on these environments. By fostering capacity-building programmes, the Trust seeks to enhance the technical skills of personnel engaged in offshore operations.
The Offshore Areas Mineral Trust Rules, 2024, mark a significant step towards balancing economic development with ecological sustainability, reinforcing India’s commitment to responsible mineral exploration and environmental stewardship.
First Published: Aug 12 2024 | 7:16 PM IST
