Tightened Control: India Implementing Stricter Licensing Regulations for Offshore Mining of Atomic Resources
India has introduced stringent regulations for the exploration and production of atomic minerals in offshore areas, with the aim of securing the country's strategic interests while safeguarding the environment. The Offshore Areas Atomic Minerals Operating Right Rules, 2025, notified recently, outline comprehensive controls and stipulations for this sector.
The rules apply to the exploration and mining of atomic minerals such as uranium and thorium in offshore areas, provided the concentration exceeds a defined threshold value. Only government entities, Central Public Sector Enterprises (CPSEs), or companies specifically nominated by the Central Government are eligible for exploration licenses or production leases in India's Exclusive Economic Zone (EEZ). Private companies can participate only if nominated by the government, thereby restricting the sector to entities with government backing.
If foreign domiciled entities, contractors, personnel, vessels, or equipment are engaged in exploration operations, prior approval from government authorities is mandatory. This measure is designed to ensure national security and regulatory control over foreign involvement in atomic mineral activities offshore.
Before any offshore block is declared open for atomic mineral mining, the central government must consult at least a dozen ministries and departments, including Defence, Environment, Home Affairs, Fisheries, among others. This comprehensive oversight aims to safeguard environmental, security, and strategic interests.
License holders are required to restore affected marine and coastal areas promptly after project completion. Specifically, within six months after the expiry or termination of the license, licensees must take all steps to enable natural rehabilitation of the seabed disturbed during exploration.
These rules are framed under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and specifically address atomic minerals, differentiating them from other mineral explorations regulated under the Offshore Areas Operating Right Rules, 2024 if the atomic mineral concentration is below threshold levels.
Exploration and production plans must comply with the Offshore Area Mineral Conservation and Development Rules, 2024. Developers must furnish bank guarantees covering up to 0.50% of the resource value. Periodic reports to the Directorate of Atomic Minerals Exploration and Research (AMD), environmental restoration, data sharing protocols, and deployment of tracking technologies on offshore assets have been made mandatory.
The government reserves the right to revoke or deny licenses if discoveries are deemed strategically sensitive or exceed the threshold grade. In such cases, compensation to original explorers may be provided based on incurred expenses. The move comes at a time when geopolitical tensions and energy transition demands have sharpened interest in rare and atomic minerals.
This article does not concern topics such as the poor enforcement of GI tag affecting Darjeeling tea industry, addition of automotive steel output, airplane diversion due to technical snag, Q1 results of various companies, and Hollywood films' performance at the Indian box office. The move aims to consolidate India's control over offshore nuclear fuel assets.
- In the automotive industry, the stricter regulations in India have limited private companies' involvement in offshore atomic mineral exploration, as they can only participate if nominated by the government.
- The economic implications of these regulations are significant, as they aim to safeguard India's strategic interests, including national security and the control over offshore nuclear fuel assets.
- Companies engaged in offshore atomic mineral operations must comply with various business practices, such as data sharing protocols and the deployment of tracking technologies on offshore assets.
- The Offshore Area Mineral Conservation and Development Rules, 2024, also mandate environmental restoration and the preservation of marine and coastal areas affected by exploration.
- The analysis of these regulations suggests that they prioritize the energy sector, specifically atomic minerals, and differentiate them from other mineral explorations.
- In sports and entertainment, the regulations for offshore atomic mineral exploration are not comparable, as they involve strategic national interests and economic concerns rather than live events or entertainment content.
