Section 13. Grant of production lease.

1[13. Grant of production lease.-- (1) The administering authority may, in respect of an offshore area where the existence of mineral resources has been adequately established for grant of production lease as required by the second proviso to section 6, after inviting applications in this behalf, select any person for grant of a production lease, who-- (a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and (b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner and bidding parameters, as may be prescribed. (2) The Central Government shall grant the production lease to the applicant selected in accordance with the procedure laid down under sub-section (1). (3) Every production lease under this section shall be granted for a period of fifty years. (4) The area under a production lease shall comprise of contiguous standard blocks and shall not exceed an area of fifteen minutes latitude by fifteen minutes longitude. (5) Upon grant of a production lease, the lessee shall commence and carry out production operation in such manner and subject to such terms and conditions, as may be prescribed. (6) The provisions of this section shall not apply to-- (a) the areas covered under section 8; and (b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), where the grade of atomic mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify.]