The Offshore Areas Mineral (Development & Regulation) Bill, 2001, which recently received the Cabinet nod, would stimulate exploration and development of minerals throughout the 8,041 km of Indian coastline.
According to Union minister of mines Sunder Lal Patwa, the bill seeks to develop offshore areas scientifically and systematically for exploration of mineral reserves except petroleum, natural gas and hydrocarbon resources.
Sands, containing heavy mineral such as ilmenite, leucoxene, aluminium silicate and garnet used in the paint industry, are available along the sea coasts.
The need for such a legislation was felt to have a proper legal framework for regulation and development of minerals available in the offshore areas such as territorial waters, continental shelf, exclusive economic zone and other maritime zones of the country, Patwa said.
"Exploration licence would be granted to any person over any area after submission of a work programme for the exploration or development of mineral deposits in that area," he said.
However, the government would grant operating rights to only domestic companies. The proposed legislation provides for payment of royalty for discouraging acquisition of large areas for speculative purposes.
"Every holder of the operating rights shall be liable for any pollution or damage to marine environment in offshore areas," he said.
