Mines ministry notifies rules to curb illegal offshore mineral mining

The new framework mandates real-time vessel tracking, digital transit permits and prior export clearances, and introduces stringent penalties, including jail terms, to prevent illegal offshore mineral

In a bid to tighten oversight of the mining, storage, transportation and export of minerals extracted from India’s offshore areas, the Centre has notified the Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules, 2026.

 

The rules, issued by the Ministry of Mines, came into force on February 3. The new framework applies to all offshore minerals except hydrocarbons and is aimed at preventing illegal mining, illegal storage and unauthorised transportation of minerals from offshore blocks. Scientific testing and research activities without commercial intent have been exempted.

 

A key feature of the rules is the mandatory deployment of real-time electronic monitoring systems by holders of operating rights and owners of carriers. These systems must be capable of tracking vessels, recording weight, monitoring run-of-mine volume and density, and continuously capturing images and video feeds related to offshore mining operations.

 

The notification also introduces tighter oversight of mineral movements outside the lease area. Before dispatching minerals outside a licence or lease area, operating right holders must upload detailed information on quantity, grade, consignee details, transport routes, royalty payments and carrier particulars on the regulation portal. Based on this disclosure, a digitally signed transit permit will be issued for each carrier. The Indian Bureau of Mines (IBM) will share copies of these permits with the relevant state governments at the first point of discharge.

 

For mineral exports directly from offshore areas, companies must now obtain prior clearance from the Central Board of Indirect Taxes and Customs at least seven days before export. Transit permits can be suspended if dues or penalties are pending, unregistered carriers are used, or provisions of the Act or rules are violated.

 

The rules also tighten controls at the first onshore point of discharge, where mandatory weighment systems must be installed and maintained. The weight recorded at discharge will be matched against dispatch data. Consignees are required to verify quantity and grade upon receipt and maintain records. 

The rules provide for extensive enforcement powers, allowing officers to inspect mineral stocks, verify accounts, draw samples, and seize vessels, machinery or other property involved in illegal mining or transport. Seized minerals, including processed minerals, can be disposed of through public auction, with proceeds credited to the Consolidated Fund of India.

 

Penalties for violations are stringent. Offenders can face imprisonment of up to five years, fines ranging from Rs 50 lakh to Rs 1 crore, and an additional penalty of up to Rs 5 lakh per day for continuing offences. In serious cases, authorities may recommend cancellation of operating rights, leases or registrations, and confiscation of equipment used in illegal activities.