New Delhi, October 1: India is taking a fresh step towards exploring the mineral resources lying beneath its seas, with the Ministry of Mines launching the auction of two offshore mineral blocks in the Andaman Sea on Thursday.
The two blocks will be offered through a Composite Licence, covering the exploration and development of mineral resources. The move is aimed at bringing more investment and technology into offshore exploration and expanding the country’s mineral resource base.
The blocks are located in the Andaman Sea region near Great Nicobar. The area is known to have seabed deposits containing minerals such as nickel, cobalt, manganese and copper, as well as rare earth elements. These minerals are increasingly important for industries including electric vehicles, renewable energy, electronics and other advanced technologies.
For the government, the auction is also part of a wider effort to reduce dependence on overseas sources for important minerals. Developing domestic resources could provide another source of raw materials for industries that are expected to see growing demand in the coming years.
The auction is being conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002 and the Offshore Areas Mineral (Auction) Rules, 2024, as amended. Changes made to the law in 2023 gave the Ministry of Mines the authority to auction offshore mineral blocks.
The latest auction comes after an earlier attempt to offer offshore blocks did not attract enough qualified bidders. The government has since made changes to the auction rules, including reducing the minimum number of technically qualified bidders required for an auction to proceed on its first attempt.
The government hopes the latest round will generate greater interest from companies and encourage the use of modern technology for exploring and eventually developing India’s offshore mineral resources.
The auction marks a new phase in India’s efforts to look beyond its land-based mineral reserves and assess the potential of resources found beneath the country’s surrounding seas.
