Govt proposes fund to explore offshore mining
1 min read 27 Feb 2023, 11:42 PM ISTThis draft is a fresh attempt by the government to open up offshore mining to the private sector after two failed attempts by two different governments since 2002.
PremiumNEW DELHI : The government proposes to set up a fund for exploration of offshore mining and mitigation of its adverse effects. It is part of a draft rule to amend the Offshore Areas Mineral (development and regulation) Act, 2002, to allow private participation.
“To ensure availability of funds for exploration, mitigation of adverse impact of offshore mining, disaster management, research, etc. provision has been made for setting up of a non-lapsable Offshore Areas Mineral Trust which will maintain a fund under the Public Account of India. This will be funded by an additional levy, not exceeding one third of the royalty on the production of minerals. The exact rate of additional levy will be prescribed by the Central Government," reads the draft that has been put up for public comment.
This draft is a fresh attempt by the government to open up offshore mining to the private sector after two failed attempts by two different governments since 2002.
The report said India has a 7,517-km-long coastline and is home to nine coastal states and four union territories with 1,382 islands. “India’s Exclusive Economic Zone (EEZ) of over two million square kilometers holds significant recoverable resources of crude oil and natural gas, construction sand, heavy minerals, limemud, poly-metallic nodules and crust," it added.
The government, in the draft, said that the Geological Survey of India (GSI) has estimated availability of minerals and participation by the private sector will achieve full potential of any find.
“The GSI, with its limited capacity, has estimated 79 million tonnes of heavy mineral resources; 1,53,996 million tonnes of lime mud in the Indian EEZ and 745 million tons of construction sand in the Territorial Water," the draft read.
“As India aims to become a high-growth economy, it needs to harness its maritime resources to its optimal capacity. In order to harness the full potential of these maritime resources, it is imperative to encourage the participation of the public private sector."
