Bill omits Section 11 of Offshore Mineral Act, replaces 1956 Companies Act with 2013 version

This Bill amends the Offshore Areas Mineral (Development and Regulation) Act, 2002 to introduce a new 'composite licence' that combines exploration and production rights, and to update rules regarding the granting, termination, and management of offshore mineral rights.

The law affects permittees, licensees, lessees, the Government, Government companies, corporations, and private entities authorized by the Central Government to conduct exploration or production operations in offshore areas.

• Introduces a 'composite licence' defined as a two-stage operating right for exploration followed by production.
• Defines 'standard block' as an offshore area of one minute latitude by one minute longitude.
• Requires that exploration and operational data, reports, and samples be furnished to the administering authority and held in strict confidence.
• Prohibits granting exploration or production leases for Part B minerals (under the Mines and Minerals Act, 1957) to anyone other than the Government, a Government company, or a corporation if the mineral grade exceeds a specified threshold.
• Allows the Central Government to terminate operating rights for public interest, strategic interest, or conservation, with limited exceptions for hearing in cases of strategic interest.
• Specifies that production leases lapse if production/dispatch is not undertaken for four years or discontinued for two years, with a possible one-year extension for reasons beyond the lessee's control.
• Mandates that if a Government company or corporation enters a joint venture, the partner must be selected through a competitive process and the Government entity must hold more than 74% of the paid-up share capital.
• Replaces sections 12 and 13 to establish that composite licences are granted through competitive bidding (including e-auction) and must be completed within three years, extendable by two years once.

Written from the document by AI, and checked against it. The original below is authoritative.

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