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Core Purpose

The Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 (No. 17 of 2023), enacted by Parliament and assented to by the President, amending the Offshore Areas Mineral (Development and Regulation) Act, 2002 to introduce a new composite exploration-cum-production licensing regime and related definitional and procedural changes.

Detailed Summary

Published by the Ministry of Law and Justice (Legislative Department), the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 (No. 17 of 2023), which received Presidential assent on 10th August 2023, amends the Offshore Areas Mineral (Development and Regulation) Act, 2002 (the principal Act); it inserts new definitions in section 4 including 'composite licence' (a two-stage exploration-cum-production operating right), 'dispatch', 'Government company' (as defined in the Companies Act, 2013), and 'standard block' (one minute latitude by one minute longitude), and updates cross-references to the Mines and Minerals (Development and Regulation) Act, 1957; it amends section 5 (references to the Atomic Minerals Directorate for Exploration and Research and the National Hydrographic Office), section 6 (restricting grant of composite/exploration licences or production leases for certain Schedule Part B minerals absent Government/Government company/corporation status above a threshold grade), section 7 (grounds for premature termination, including strategic interest, and extension of non-commencement periods), section 8 (allowing grant of composite licences or production leases to Government entities and joint ventures where the Government company or corporation must hold more than seventy-four per cent of paid-up share capital), section 9 (closure orders for specified periods), and section 10; it omits section 11 and substitutes new sections 12 and 13 establishing a competitive-bidding (including e-auction) procedure for the Central Government to grant composite licences for exploration followed by production, with a three-year exploration period extendable by two years.

Full Text

THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2023 NO. 17 OF 2023 [10th August , 2023.] An Act to amend the Offshore Areas Mineral (Development and Regulation) Act, 2002. BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:— 1. (1) This Act may be called the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 2. In the Offshore Areas Mineral (Development and Regulation) Act, 2002 (hereinafter referred to as the principal Act), in section 4,— (i) in clause ( b), after the words, brackets and figures "Mines and Minerals (Development and Regulation) Act, 1957", the words "and the rules made thereunder"shall be inserted;Short title andcommencement. Amendment of section 4.17 of 2003. 67 of 1957.MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 11th August, 2023/ Sravana 20, 1945 ( Saka ) The following Act of Parliament received the assent of the President on the 10th August, 2023 and is hereby published for general information:—vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 1 PART II — Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 20] ubZ fnYyh] 'kqØokj] vxLr 11] [email protected] 20] 1945 ¼'kd½ No. 20] NEW DELHI, FRIDAY, AUGUST 1 1, 2023/SRAV ANA 20, 1945 (SAKA) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation.xxxGIDHxxx jftLVªh lañ Mhñ ,yñ —(,u)04@0007@2003 —23 REGISTERED NO. DL—(N)04/0007/2003—23 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 CG-DL-E-12082023-248041 (ii) after clause ( c), the following clauses shall be inserted, namely:— '(ca) "composite licence" means the exploration licence-cum-production lease, which is a two stage operating right granted for the purpose of undertakingexploration operation followed by production operation; (cb) "dispatch" means removal of minerals or mineral products from the area covered under the production lease and includes the consumption ofminerals and mineral products within such area;'; (iii) in clause ( d), for the words and figures "under section 12", the words "for the purpose of undertaking exploration operation" shall be substituted; (iv) after clause ( e), the following clause shall be inserted, namely:— '(ea) "Government company" shall have the meaning assigned to it in clause ( 45) of section 2 of the Companies Act, 2013;'; (v) in clause ( i), for the words "the production lease", the words "a production lease" shall be substituted; (vi) in clause ( j), for the words "the exploration licence is granted", the words "a composite licence, or an exploration licence, is granted" shall be substituted; (vii) in clause ( k), for the words "an exploration licence or production lease", the words "a composite licence, or an exploration licence, or a production lease" shall besubstituted; (viii) in clause ( o), for the words "an exploration licence, or a production lease", the words "a composite licence, or an exploration licence, or a production lease" shallbe substituted; (ix) after clause ( r), the following clause shall be inserted, namely:— '(ra) "production", with its grammatical variation and cognate expressions, means the winning of mineral within the area covered under a production leasefor the purpose of processing or dispatch;'; (x) in clause ( t), for the words and figures "under section 13", the words and figures "under section 8 or section 12 or section 13" shall be substituted; (xi) in clause ( v), the words and figures "under section 11" shall be omitted; (xii) after clause ( v), the following clause shall be inserted, namely:— '(va) "standard block" means a block of the offshore area of one minute latitude by one minute longitude and includes the seabed and its subsoil andwaters superjacent to the seabed within such block;'; (xiii) in clause ( w), for the words "boat, sailing vessel or any other vessel of any description", the words "barge, boat, container, sailing vessel or stationary vessel orany other vessel of any description, submersible or otherwise and remotely operatedor otherwise, used in any operation or any activity pursuant thereto" shall besubstituted. 3. In section 5 of the principal Act,— (a) in sub-section ( 1),— (i ) for the words "exploration licence or production lease granted", the words "a composite licence, or an exploration licence, or a production lease,granted" shall be substituted; (ii) in the proviso,— (A) for the words "Atomic Minerals Directorate of Exploration and Research", the words "Atomic Minerals Directorate for Exploration andResearch" shall be substituted;18 of 2013. Amendment of section 5. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 (B) for the words "Naval Hydrographic Office of the Indian Navy", the words "the National Hydrographic Office" shall be substituted; (C) for the words "any other agency duly authorised in this behalf by the Central Government", the words "any other agency including aprivate entity, duly authorised in this behalf by the Central Government bynotification in the Official Gazette, subject to such conditions as may bespecified therein" shall be substituted; (b) for sub-section ( 2), the following sub-section shall be substituted, namely:— "(2) Every permittee, licensee and lessee referred to in sub-section ( 1), and the Government organisation, agency or private entity referred to in theproviso thereof, shall— (a) furnish to the administering authority and such other authority as may be prescribed, all exploration and operational data,reports, samples and other information in respect of or collectedpursuant to an operation, in such manner and within such period, asmay be prescribed; and (b) all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, shall beheld by such permittee, licensee, lessee, Government organisation, agencyor private entity, as the case may be, in strict confidence and anydissemination, pursuant to a sale or otherwise, of such data, reports orother information, or sharing of its samples, shall be subject to such termsand conditions, as may be prescribed."; (c) in sub-section ( 4),— (i) for the words "granted or renewed", the words "granted, extended or acquired" shall be substituted; (ii) for the words "exploration licence or production lease granted, renewed or acquired", the words "composite licence, exploration licence or productionlease, granted, extended or acquired" shall be substituted. 4. In section 6 of the principal Act,— (i) in clause ( a), for the words and figures "section 3 of the Companies Act, 1956", the words, brackets and figures "clause ( 20) of section 2 of the Companies Act, 2013" shall be substituted; (ii) for the proviso, the following provisos shall be substituted, namely:— "Provided that no exploration licence, or composite licence, or production lease shall be granted for an area to any person other than the Government, aGovernment company or a corporation, in respect of any minerals specified inPart B of the First Schedule to the Mines and Minerals (Development andRegulation) Act, 1957, subject to such conditions and manner as may beprescribed, where the grade of such mineral in such area is equal to or greaterthan such threshold value as the Central Government may, by notification in theOfficial Gazette, specify: Provided further that no production lease shall be granted in respect of any part of the offshore area, unless the existence of mineral resources in suchoffshore area has been adequately established in accordance with suchparameters as may be prescribed.". Amendmentof section 6. 1 of 1956. 18 of 2013. 67 of 1957. 5. In section 7 of the principal Act,— (a) in sub-section ( 1),— (i) for the words "that it is expedient in the interest of", the words "that it is expedient in public interest, strategic interest of the country, in the interest of"shall be substituted; (ii) after the words "conservation of mineral resources", the words "or for any other reason" shall be inserted; (b) in sub-section ( 2), for the words "opportunity of being heard", the words "opportunity of being heard, except in cases where premature termination is beingdone on the grounds of strategic interest of the country" shall be substituted; (c) in sub-section ( 3),— (i) in the proviso, for the words "condone such non-commencement or discontinuation.", the words and figures "extend the period specified in section 14by a further period not exceeding one year and such extension shall not begranted for more than once during the entire period of operating right:" shall besubstituted; (ii) after the proviso, the following proviso shall be inserted, namely:— "Provided further that where the holder of operating right— (a) fails to undertake operation; or (b) having commenced the operation, discontinues such operation, before the end of the extended period, such operating right shall also lapse from the date of execution of the lease or, as the case may be,discontinuance of the operation."; (d) after sub-section ( 3), the following shall be inserted, namely:— "(4) Where the holder of a production lease fails to undertake production and dispatch for a period of four years after the date of execution of the lease, orhaving commenced production and dispatch, discontinues the same for a periodof two years, then such lease shall lapse on the expiry of the period of four yearsfrom the date of its execution or, as the case may be, two years from date ofdiscontinuance of the production and dispatch: Provided that the administering authority may, on an application made by the lessee, and after being satisfied that such non-commencement of production,or dispatch, or discontinuation thereof, was due to the reasons beyond thecontrol of the lessee, may extend such period by a further period not exceedingone year, but such extension shall not be granted for more than once during theentire period of lease: Provided further that where the lessee,— (a) fails to undertake production or dispatch; or (b) having commenced the production and dispatch, discontinues the same, before the end of the extended period, such lease shall lapse from the date of its execution or, as the case may be, discontinuance of production or dispatch.". 6. In section 8 of the principal Act, after sub-section ( 2), the following sub-sections shall be inserted, namely:— "(3) Where the Central Government reserves any offshore area under sub-section ( 1), the administering authority may, subject to such terms and conditions as may be prescribed, grant a composite licence, or a production lease, in such area orany part thereof to the Government, or a Government company, or a corporation. Amendmentof section 8.Amendment of section 7. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 (4) A composite licence or a production lease granted to the Government, or a Government company, or a corpo ration under sub-section ( 3) shall be subject to the same terms and conditions applicable to a licensee or a lessee, as the case may be,except the procedure specified for grant of a composite licence under section 12 or aproduction lease under section 13. (5) Where a Government company, or corporation is desirous of carrying out the exploration operation or production operation in a joint venture with other persons,the joint venture partner shall be selected through a competitive process, and suchGovernment company or corporation shall hold more than seventy-four per cent. ofthe paid up share capital in such joint venture.". 7. In section 9 of the principal Act,— (a) in sub-section ( 1),— (i) after the words "any operating right, for", the words "such period as may be specified in the order, for" shall be inserted; (ii) for the words "offshore mineral, or for national security", the words "offshore mineral, or for regulation of offshore areas, or for national security"shall be substituted; (b) in sub-section ( 2),— (i) after the words "purposes of the operating right", the words "for such period as may be specified in the order" shall be inserted; (ii) for the words "from the date specified therein", the words "during the period of closure specified therein" shall be substituted. 8. In section 10 of the principal Act,— (a) in sub-section ( 1),— (i) for the brackets, figure and words "( 1) Within six months", the words "Within six months" shall be substituted; (ii) for the words "reconnaissance permit, exploration licence or production lease", the words "reconnaissance permit, or exploration licence, or compositelicence, or production lease" shall be substituted; (b) sub-sections ( 2) and ( 3) shall be omitted. 9. Section 11 of the principal Act shall be omitted. 10. For sections 12 and 13 of the principal Act, the following sections shall be substituted, namely:— "12. ( 1) The administering authority may, in respect of an offshore area where the existence of mineral resources has not been adequately established for grant of aproduction lease as required by the second proviso to section 6, after invitingapplications in this behalf, select any person for grant of a composite licence, who— (a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and (b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner andbidding parameters, as may be prescribed. (2) The Central Government shall grant the composite licence to the person selected in accordance with the procedure laid down in sub-section ( 1).Amendment of section 9. Amendment of section 10. Omission of section 11. Substitution of new sectionsfor sections12 and 13. Grant of compositelicence. (3) The licensee shall complete the exploration operations satisfactorily, as specified in the notice inviting applications, within a period of three years from thedate of grant of the composite licence: Provided that the administering authority may, on an application made by the licensee three months before the lapse of the said period, for reasons to be recorded inwriting and subject to such conditions as may be prescribed, grant an extension for aperiod of two years to the licensee for satisfactory completion of the explorationoperations: Provided further that no further extension shall be granted upon expiry of the extended period, if any, granted under the first proviso. (4) The area granted under a composite licence shall comprise of contiguous standard blocks, which in aggregate do not exceed an area of thirty minutes latitude bythirty minutes longitude. (5) Every licensee shall, on being granted a composite licence, commence and carry out exploration operation subject to such terms, milestones and relinquishmentrequirements, as may be prescribed. (6) A licensee, who has adequately established the existence of mineral resources in an offshore area held under the composite licence, or part thereof, as required by thesecond proviso to section 6, shall, within the period specified or extended undersub-section ( 3), subject to such terms and conditions, and on making an application to the administering authority in such form, as may be prescribed, be granted one or moreproduction leases: Provided that such licensee— (a) is not in breach of the terms and conditions of his composite licence; (b) continues to be eligible for grant of a production lease in accordance with section 6; and (c) has applied for grant of production lease within six months of completion of his exploration operations: Provided further that the total area of such production lease or production leases, granted in pursuance of a single composite licence, shall not exceed fifteenminutes latitude by fifteen minutes longitude. (7) The administering authority shall, on receipt of an application under sub-section ( 6), and on being satisfied that the licensee meets the requirements under the provisions of this Act and the rules made thereunder, recommend to the CentralGovernment for grant of production lease to such licensee. (8) The Central Government shall, on receipt of a recommendation under sub-section ( 7) from the administering authority, grant production lease to the licensee in accordance with such procedure as may be prescribed. (9) Every production lease granted in pursuance of a composite licence shall be for a period of fifty years. (10) All rights and interests held under a composite licence in the parts of an offshore area, in respect of which no production lease is granted, shall cease to existupon expiry of the composite licence. (11) The provisions of this section shall not apply to— (a) the areas covered under section 8; and (b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, where the grade of atomic 67 of 1957. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7 mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify. 13. (1) The administering authority may, in respect of an offshore area where the existence of mineral resources has been adequately established for grant of productionlease as required by the second proviso to section 6, after inviting applications in thisbehalf, select any person for grant of a production lease, who— (a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and (b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner andbidding parameters, as may be prescribed. (2) The Central Government shall grant the production lease to the applicant selected in accordance with the procedure laid down under sub-section ( 1). (3) Every production lease under this section shall be granted for a period of fifty years. (4) The area under a production lease shall comprise of contiguous standard blocks and shall not exceed an area of fifteen minutes latitude by fifteen minuteslongitude. (5) Upon grant of a production lease, the lessee shall commence and carry out production operation in such manner and subject to such terms and conditions, asmay be prescribed. (6) The provisions of this section shall not apply to— (a) the areas covered under section 8; and (b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, where the grade of atomicmineral is equal to or greater than such threshold value, as the Central Governmentmay, by notification in the Official Gazette, specify.". 11.After section 13 of the principal Act, the following sections shall be inserted, namely:— "13A. ( 1) Notwithstanding anything contained in section 12 or section 13, no person shall acquire in respect of any mineral or a group of associated minerals, as maybe prescribed, one or more exploration licence, composite licence and productionlease, all taken together and covering a total area of more than forty-five minuteslatitude by forty-five minutes longitude: Provided that if the Central Government is of the opinion that in the interest of the development of any mineral or industry, it is necessary so to do, it may, for thereasons to be recorded in writing, increase or decrease the said area limit in respect ofany mineral or any specified category of deposits of such mineral or such group ofassociated minerals. (2) For the purposes of this section, a person acquiring by, or in the name of, another person an operating right which is intended for himself, shall be deemed to beacquiring it himself. (3) For the purposes of determining the total area referred to in sub-section ( 1), the area held under an operating right by a person as a member of a co-operativesociety, or a company, or a corporation, or a Hindu undivided family, or a partner of afirm, shall be deducted from the area referred to in sub-section ( 1) so that the sum total of the area held by such person, under an operating right, whether as such member orGrant ofproductionlease. Insertion of new sections13A, 13B and13C. Maximum area for whichoperatingrights may begranted.67 of 1957. partner, or individually, may not, in any case, exceed the total area specified in sub-section ( 1). 13B. ( 1) A composite licence or a production lease granted under section 8, or through competitive bidding under section 12 or section 13, may be transferred by therelevant licensee or lessee, as the case may be, in such manner and subject to suchconditions, as may be prescribed, to any person eligible for grant of such licence orlease, under the provisions of this Act: Provided that no such transfer of a composite licence or a production lease shall be made in contravention of any conditions, subject to which such licence or leasewas granted. Explanation. —For the purposes of this sub-section, it is clarified that transfer may include one or more production leases, granted pursuant to one composite licence. (2) The provisions of this Act, the rules made thereunder and the terms and conditions of a composite licence or a production lease, shall be binding upon theperson to whom such licence or lease, as the case may be, is transferred undersub-section ( 1). 13C. ( 1) On and from the date of commencement of the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023, auction being the sole method of selection for grant of composite licence or production lease under sections 12and 13,— (a) all applications received prior to the said date of commencement for grant of composite licence or production lease shall become ineligible; (b) any exploration licence granted prior to the said date of commencement shall become ineligible for grant of production lease over the offshore areacovered by such exploration licence. (2) The provisions of sub-section ( 1) shall be applicable notwithstanding anything contained in this Act, or any order or direction to the contrary, passed by anycourt or authority, prior to the commencement of the Offshore Areas Mineral(Development and Regulation) Amendment Act, 2023.". 12. In section 14 of the principal Act, after clause ( a), the following clause shall be inserted, namely:— "(aa) composite licence — one year;". 13. In section 16 of the principal Act, in sub-section ( 1), for the words "consumed by him from the area covered under the production", the words "consumed from the areacovered under his production" shall be substituted. 14. After section 16 of the principal Act, the following section shall be inserted, namely:— "16A. ( 1) The Central Government shall, by notification in the Official Gazette, establish a Trust, as a non-profit autonomous body, to be called the Offshore AreasMineral Trust. (2) The object of the Offshore Areas Mineral Trust shall be to use the funds accrued to it for the following purposes, namely:— (a) research, administration, studies and related expenditure with respect to offshore areas and mitigation of any adverse impact that may be caused to theecology in the offshore area, due to operations undertaken; or (b) providing relief upon the occurrence of any disaster in the offshore area; orTransfer ofcompositelicence orproductionlease. Certain applicationsandexplorationlicence tobecomeineligible. Amendment of section 14. Amendment of section 16. Insertion of new section16A. Establishment of OffshoreAreas MineralTrust. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9 (c) the purposes of exploration in the offshore area; or (d) for the interest and benefit of persons affected by exploration or production operations undertaken; or (e) such other purposes, as may be prescribed. (3) The composition and functions of the Offshore Areas Mineral Trust shall be such as may be prescribed. (4) The funds accrued to the Offshore Areas Mineral Trust shall be non-lapsable under the public account of India and be administered in such manner as may beprescribed. (5) A lessee shall pay, in addition to the royalty, to the Offshore Areas Mineral Trust, an amount which is equivalent to such percentage of the royalty paid in terms ofthe First Schedule, not exceeding one-third of such royalty, in such manner as may beprescribed. (6) The entities specified and notified under sub-section ( 1) of section 5 shall be eligible for funding under the Offshore Areas Mineral Trust, subject to such conditionsas may be specified by the Central Government.". 15. In section 17 of the principal Act, for the words "consumed by him from the area", the words "consumed from the area" shall be substituted. 16. For section 18 of the principal Act, the following section shall be substituted, namely:— "18. Every lessee shall, in addition to other payments required under this Act, pay to the Central Government in advance, the amount to be paid to the InternationalSeabed Authority in respect of the offshore area granted under his production leasefalling in such part of the continental shelf extending beyond two hundred nauticalmiles, from the baseline from which the breadth of the territorial sea is measured,towards fulfilment of the obligation of the Government of India under Article 82 of theUnited Nations Convention on the Law of the Sea, 1982.". 17.After section 19 of the principal Act, the following section shall be inserted, namely:— "19A. The Central Government shall take necessary steps, as may be prescribed, for the conservation and systematic development of minerals in the offshore areas andfor the protection of environment by preventing or controlling any pollution whichmay be caused by exploration or production operations.". 18. In section 23 of the principal Act,— (a) in sub-section ( 1),— (i) for clauses ( a) and ( b), the following clauses shall be substituted, namely:— "(a) whoever undertakes any reconnaissance operation, or exploration operation, or production operation in an offshore area withouta reconnaissance permit, or a composite licence, or an exploration licence,or a production lease, as the case may be, shall be punishable withimprisonment for a term which may extend to five years, or with fine offive lakh rupees, which may extend to ten lakh rupees, or with both; (b) any permittee or licensee or lessee, who fails to furnish the required data, or information, or document under sub-section ( 2) ofAmendment of section 17. Substitution of new sectionfor section 18. Contribution towardsInternationalSeabedAuthority. Insertion of new section19A. Duty of CentralGovernmenton mineralconservationanddevelopment. Amendment of section 23. section 5 in the manner provided therein, shall be punishable with imprisonment which may extend to three years, or with fine offive lakh rupees, which may extend to ten lakh rupees, or with both. Explanation .—For the purposes of clauses ( a) and ( b), the amount of fine provided shall be in respect of each standard block of such part ofthe offshore area where such reconnaissance operation, or explorationoperation, or production operation is undertaken."; (ii) in clause ( d),— (A) for the word "punished", the word "punishable" shall be substituted; (B) for the words "with fine which may extend to fifty lakh rupees", the words "with fine of twenty-five lakh rupees, which may extend tofifty lakh rupees" shall be substituted; (b) in sub-section ( 2), in the long line, for the words "punished with imprisonment for a term which may extend to five years, or with fine which may extend tofifty thousand rupees", the words "punishable with imprisonment which may extendto five years, or with fine of two lakh rupees, which may extend to five lakh rupees"shall be substituted; (c) after sub-section ( 2), the following sub-section shall be inserted, namely:— "(2A) Whoever, having been convicted of an offence under sub-section ( 1) or sub-section ( 2), is again convicted of an offence under that sub-section, shall, in addition to the punishment provided therefor, be punishable withadditional fine which may extend to one lakh rupees for each day during whichhe continues to commit that offence."; (d) in sub-section ( 3),— (i) the words "or the rules made thereunder" shall be omitted; (ii) for the word "punished", the word "punishable" shall be substituted; (iii) for the words "with fine which may extend to one crore rupees", the words "with fine of fifty lakh rupees, which may extend to one crore rupees"shall be substituted; (e) after sub-section ( 3), the following shall be inserted, namely:— "(4) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term whichmay extend to five years or with fine of fifty lakh rupees, which may extend toone crore rupees, or with both, and in the case of a continuing contravention,with additional fine which may extend to five lakh rupees for every day duringwhich such contravention continues after conviction for the first suchcontravention.". 19. In section 28 of the principal Act, in sub-section ( 1), in clause ( b), for the words "one lakh rupees and which may extend to ten lakh rupees", the words "five lakh rupees andwhich may extend to fifty lakh rupees" shall be substituted. 20. After section 34 of the principal Act, the following shall be inserted, namely:— "34A. The Central Government may, of its own motion and for reasons to be recorded in writing, and in accordance with such terms as may be prescribed, reviseany order made by the administering authority or any officer under this Act or the rulesmade thereunder. Amendmentof section 28. Insertion of new sections34A, 34B and34C. Power of revision byCentralGovernment. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 11 34B. Notwithstanding anything contained in this Act, the Central Government may give such directions to the administering authority, as it may deem necessary, inpublic interest, strategic interest of the country, conservation and development ofmineral, or to carry out the provisions of this Act or the rules made thereunder. 34C. The Central Government may, for the purposes of this Act, require— (a) the administering authority; or (b) a permittee or a licensee or a lessee; or (c) any person whom it has reason to believe to be connected with any activity in respect of minerals in the offshore area, to furnish such information as it may deem necessary for, or relevant to, any enquiry or proceeding, under this Act.". 21. In section 35 of the principal Act, in sub-section ( 2),— (i) after clause ( a), the following clauses shall be inserted, namely:— "(aa) such other authority to whom, all exploration and operational data, reports, samples and other information in respect of or collected pursuant to anoperation, is to be furnished by the lessee, licensee or permittee the manner andthe period within which, they are to be furnished, under clause ( a) of sub-section ( 2) of section 5; (ab) the terms and conditions subject to which the data, reports, samples or information is to be disseminated pursuant to a sale or otherwise underclause ( b) of sub-section ( 2) of section 5;"; (ii) for clause ( c), the following clauses shall be substituted, namely:— "(c) the conditions and manner for regulating the grant of mineral concessions in respect of minerals specified in Part B of the First Schedule to theMines and Minerals (Development and Regulation) Act, 1957 under the firstproviso to section 6; (ca) the parameters for adequately establishing existence of mineral resources under the second proviso to section 6;"; (iii) clauses ( d) to ( j) shall be omitted; (iv) after clause ( j), the following clauses shall be inserted, namely:— "(ja) the terms and conditions for grant of a composite licence or a production lease to a Government company or corporation under section 8; (jb) the eligibility conditions to be fulfilled, the terms and conditions for conducting competitive bidding, the manner and bidding parameters for grant ofa composite licence under sub-section ( 1) of section 12; (jc) the conditions subject to which extension is to be granted to the licensee for completion of the exploration operations under the first proviso tosub-section ( 3) of section 12; (jd) terms, milestone and relinquishment requirements for commencing and carrying out exploration operation under sub-section ( 5) of section 12; (je) the form of application to be made to the administering authority for grant of production lease under sub-section ( 6) and the procedure therefor under sub-section ( 8) of section 12; (jf) eligibility conditions to be fulfilled, the terms and conditions for conducting competitive bidding, the manner and bidding parameters for grant of a production lease under sub-section ( 1) of section 13;Amendment of section 35.Power of CentralGovernmentto issuedirections. Power of CentralGovernmentto call forinformation. 67 of 1957. (jg) the terms and conditions subject to which the production operations shall be commenced and carried out under sub-section ( 5) of section 13; (jh) the group of associated minerals to be specified under sub-section ( 1) of section 13A; (ji) the manner and the conditions for transfer of a composite licence or a production lease under section 13B; (jj) such other purposes for which the funds accrued to the Offshore Area Mineral Trust shall be used under sub-section ( 2) of section 16A; (jk) the composition and functions of the Offshore Area Mineral Trust under sub-section ( 3) of section 16A; (jl) the manner of administration of funds accrued to the Offshore Area Mineral Trust under sub-section ( 4) of section 16A; (jm) the manner of payment of amounts to the Offshore Area Mineral Trust under sub-section ( 5) of section 16A;"; (v) after clause ( k), the following clause shall be inserted, namely:— "(ka) the steps necessary to be taken for conservation and systematic development of minerals in the offshore areas and for the protection of environment by preventing or controlling any pollution which may be caused by exploration or production operations under section 19A;"; (vi) after clause ( p), the following clause shall be inserted, namely:— "(pa) the measures to be taken for preventing illegal mining, transportation, and storage of minerals and for the purposes connected therewith;". 22. Section 36 of the principal Act shall be omitted. 23. In the Second Schedule to the principal Act, in the Table, for the entries in column (1) relating to size, the following shall be substituted, namely:— Size "Standard block of 1 minute longitude by 1 minute latitude.". 24. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of the principal Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this sub-section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. ———— DR. REETA VASISHTA, Secretary to the Govt. of India.Omission of section 36. Amendment of SecondSchedule. Removal of difficulties. MGIPMRND—283GI(S3)—11-08-2023.UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.12 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II— S EC. 1]

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