INDIA Law and Practice Contributed by: Vishnu Sudarsan, Kartikeya Gajjala and Mehar Vasant, J Sagar Associates
• efforts will be made to benchmark and har - monise royalty and all other levies and taxes with mining jurisdictions across the world to make India an attractive destination for explo - ration and mining. Lastly, the Mines Act, 1952 (read with the rules issued thereunder) consolidates the law relating to the regulation of labour and safety in mines, with detailed provisions concerning health and safety, hours and limitation of employment, and leave of absence. Pursuant to Entry 54 of the Union List, the Par - liament of India has enacted the Offshore Areas Mineral (Development and Regulation) Act, 2002, which provides for the development and regula - tion of mineral resources in the territorial waters, continental shelf, exclusive economic zone and other maritime zones of India. This act lays out various key aspects regarding offshore mining, including the types of operating rights that may be granted, the manner of granting such rights, and the persons eligible to win such rights. The following rules have been notified under this act, and form essential components of the regulatory framework: • Offshore Areas Mineral (Auction) Rules, 2024, which set out the terms, conditions and procedure for conducting mineral auctions, including the net worth requirements and bid - ding parameters; • Offshore Areas Operating Right Rules, 2024, notified on 16 October 2024, which detail the terms and conditions of operating rights, stipulations concerning production plans, procedures for transferring operating rights and the manner of calculating royalty; and • Offshore Areas Mineral Conservation and Development Rules, 2024, which set out provisions concerning sustainable mining, the
requirements for plans and sections, and the stipulations concerning production opera - tions. 1.3 Ownership of Mineral Resources The issue of the ownership of minerals is not conclusively settled in law. While it is commonly understood that the state governments own minerals located within their respective bounda - ries, the Supreme Court of India held in its 2013 judgment in Threesiamma Jacob and Ors. v Geologist, Department of Mining and Geology and Ors., reported as (2013) 9 SCC 725, that there was nothing in the law declaring that all mineral wealth and sub-soil rights vest in the state, holding that ownership of sub-soil/mineral wealth should normally follow the ownership of the land, unless the owner of the land is deprived thereof by some valid process. Nevertheless, it is noteworthy that the MMDR Act clearly stipulates that no person shall under - take any mining operations in any area without a mining lease granted under the MMDR Act and the rules made thereunder. As noted in 1.1 Main Features of the Mining Industry and 1.2 Legal System and Sources of Mining Law , mineral concessions to undertake mining operations are ordinarily granted by the state government by way of auctions. Thus, from a practical perspec - tive, it would appear that no mining operations may be undertaken except under a right granted by the state government pursuant to the MMDR Act, regardless of the issue of ownership. 1.4 Role of the State in Mining Law and Regulations As outlined in 1.2 Legal System and Sources of Mining Law , the regulation of mining is vested in the central government (including the man - ner of and eligibility for the granting of mineral concessions, and the terms and conditions of
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