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THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) ACT, 2002

Title : THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) ACT, 2002

Year : 2002



The Central Government may, by notification in the Official Gazette,-

(a) Extend with such restrictions and modifications as it thinks fit, any enactment for the time being in force in India or any part thereof to the offshore area or any part thereof; and

(b) Make such provisions as it may consider necessary for facilitating the enforcement of such enactment, and any enactment so extended shall have effect as if the offshore area or the part thereof, as the case may be, is a part of the territory of India.



(1) Any offence punishable under this Act may, either before or after the institution of the prosecution, be compounded by the administering authority or any other officer authorised by the Central Government with respect to that offence, on payment for credit to that Government of such sum as that administering authority or officer, as the case may be, may specify:

Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offence so compounded.

(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded and the offender, if in custody, shall be released forthwith.



Any licence fee, royalty, fixed rent or other sum due to the Central Government under this Act or rules made there under or under the terms and conditions of a reconnaissance permit, exploration licence or production lease may, on a certificate issued by the administering authority, be recovered in the same manner as if it were an arrear of land revenue and every such sum together with the interest due thereon, shall be the first charge on the assets of the permittee, licensee or lessee, as the case may be



The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act or any rule made there under may, in relation to such matter and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate to that Government as may be specified in the notification.



No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule made there under.



(1) Subject to the provisions of sub-section (2), any person aggrieved by an order made by the administering authority or any officer under this Act or the rules made there under may prefer an appeal against such order to the Central Government.

(2) Every such appeal shall be preferred within prescribed period from the date on which the impugned order was made: Provided that the Central Government may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within such prescribed period, permit the appellant to prefer the appeal within a further period as may be prescribed.

(3) On receipt of any such appeal, the Central Government shall, after giving the parties to the appeal a reasonable opportunity of being heard and after making such inquiry as it deems proper, make such order, as it may think fit, confirming, modifying or reversing the order appealed against, or may send back the case with such direction as it may think fit for a fresh order after taking additional evidence, if necessary.



(1)The Central Government may, by notification in the Official Gazette, make rules for the purposes of this Act.
 
(2)Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) The terms and conditions of a reconnaissance permit, exploration licence or production lease under sub-section (1) of section 5;

(b) Conditions for grant of operating right under clause (b) of section 6;

(c) Substances to be prescribed under proviso to section 6;

(d) The requisite technical ability and financial resources to undertake exploration operation on scientific parameters under clause (b) of sub-section(1)of section 12;

(e) The manner in which a work programme shall be prepared and the data by which the work programme shall be supported under clause (c) of sub-section(1)of section 12;
 
(f) The manner of transfer referred to in sub-clause (ii) of clause (e) of sub-section (1) of section 12;

(g) The time within which the applications under sub-section (3)of section 12 are to be received;

(h) The requisite technical ability and financial resources to undertake production operation on scientific parameters under clause (b) of sub-section (1) of section 13;

(i) The manner in which a work programme shall be prepared and the data by which the work programme shall be supported under clause (c) of sub-section(1)of section 13; (j)the manner of transfer referred to in sub-clause (II) of clause (e) of sub-section(1)of section 13;
 
(k) Norms for regulating the safety and health of persons and safety of property engaged in operations authorised under this Act, the implementation thereof and matters connected therewith under sub-section (2)of section 19;

(l) The measures to be taken for prevention and control of pollution and protection of marine environment due to activities in the offshore areas under sub-section (3) of section 20;

(m) The manner of filing application under sub-section (3)of section 28;

(n) The manner of filing reply under sub-section (4)of section 28;

(o) Any other matter under clause (f) of sub-section (5)of section 28;

(p) The period within which appeal shall be preferred under, and the further period which may be permitted under the proviso to, sub-section (2)of section 34;

(q) Any other matter which is to be, or may be, prescribed under this Act.

(3)Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.



Notwithstanding anything to the contrary contained in this Act or any rule made there under, the Central Government may, if it is of the opinion that in the interests of the offshore mineral development, it is necessary so to do, by order and for reasons to be recorded in writing, authorise in any specific case the grant, renewal or transfer of any operating right to any person on such terms and conditions as it may specify in this behalf in such order.



The administering authority or any other officer shall be deemed, while acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of the Indian Penal Code.


 
(1) If any difficulty arises in giving effect to the provisions of this Act, or of any of the enactments extended under section 29, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or, as the case may be, of such enactment, as may appear to it to be necessary or expedient for removing the difficulty:

Provided that no order shall be made under this section,-

(a) In the case of any difficulty arising in giving effect to any provision of this Act, after the expiry of three years from the commencement of such provision;

(b) In the case of any difficulty arising in giving effect to the provisions of any enactment extended under section 29, after the expiry of three years from the extension of such enactment.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

Schedule I 

THE FIRST SCHEDULE

[See section 16(1)]
rates of royalty
 
1. Brown ilmenite (leucoxene), Ilmenite, Rutile and Zircon Two per cent. of sale price on ad valorem basis.

2. Dolomite Forty rupees per tonne.

3. Garnet Three per cent. of sale price on ad valorem basis.

4. Gold One and half per cent. of London Bullion Market Association price (commonly referred to as "London Price") chargeable on the contained gold metal in ore produced.

5. Limestone and Lime mud Forty rupees per tonne.

6. Manganese Ore Three per cent. of sale price on ad valorem basis.
 
7. Monazite One hundred and twenty-five rupees per tonne.

8. Sillimanite Two and half per cent. of sale price on ad valorem basis.

9. Silver Five per cent. of London metal Exchange price chargeable on the contained silver metal in ore produced.

10. All other minerals not hereinbefore specified. Ten per cent. of sale price on ad valorem basis.
 
Schedule II
 
THE SECOND SCHEDULE
[See section 17(1)]

rates of fixed rent Rates of fixed rent in rupees per standard block per annum Size 1st Year of the lease 2nd to 5th year of the lease 6th to 10th year of the lease 11th year of the lease and onwards Standard block of 5 minutes longitude by 5 minutes latitude. Nil Rupees 50,000 Rupees 1,00,000 Rupees 2,00,000  

Last updated on August, 2016

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