Centre notifies strict rules to curb illegal offshore mineral mining

Centre has rolled out new regulatory framework for offshore minerals, mandating real-time vessel tracking, digital transit permits, stricter export clearances to prevent illegal mining and transport

In a bid to tighten oversight of 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 mineral oils and 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.

 

Illegal mining refers to reconnaissance operation, exploration operation or production operation undertaken by any person or company in an offshore area, without holding an operating right.

   

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 oversight on mineral movements outside 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.

 

The rules are notified under Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR Act) which governs offshore mining in India. The OAMDR Act, 2002 came into force in 2010. However, no mining activity was undertaken in the offshore areas until 2023, when a new amendment was made to the original act, allowing for auctioning of offshore minerals blocks.

 

Following the amendment, 13 offshore mineral blocks were floated for auction. The amendment was met with protest in Kerala by fishermen unions, who argued that the act was passed in haste with no consultation with fishermen communities. They feared that once mining companies start operating in offshore areas, it will deplete fish resources and ultimately hurt the livelihood of fishermen.

 

According to the rules, for mineral exports directly from offshore areas, companies will now have to obtain prior clearance from the Central Board of Indirect Taxes and Customs (CBIC), 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.

 

Enforcement powers under the rules are extensive. Authorised officers can 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 ₹50 lakh to ₹1 crore, and an additional penalty of up to ₹5 lakh per day for continuing offences. In serious cases, authorities may recommend cancellation of operating rights, leases or registrations, and confiscate equipment used in illegal activities.