New Delhi, Sep 30: India today begins the auction of its first offshore mineral blocks, with two blocks in the Andaman Sea region being offered for Composite Licences as the Centre moves to open up offshore mineral exploration under a competitive allocation framework.
The auction, being conducted by the Ministry of Mines, marks the first phase of the government’s effort to develop offshore mineral resources. The move comes amid growing global demand for critical minerals used in clean energy technologies, electric mobility, advanced manufacturing and other emerging sectors.
The offshore resources contain minerals including cobalt, nickel, manganese, copper and rare earth elements. These minerals are used in renewable energy systems, electric vehicles, advanced electronics and strategic industries, making access to such resources relevant to India’s longer-term resource requirements.
The Ministry is conducting the auction under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024. Amendments to the OAMDR Act in 2023 empowered the Centre to allocate offshore mineral blocks through a transparent and competitive auction process.
The two blocks offered in the Andaman Sea constitute the first phase of the auction and are being made available for the grant of Composite Licences. The process is intended to enable systematic exploration of offshore mineral resources while bringing private-sector participation into the sector.
The government expects the auction to attract investment and support the use of advanced technologies for offshore mineral exploration and development. It also seeks to expand the country’s mineral resource base through scientific exploration and responsible development of offshore resources.
For the Andaman Sea region, the auction places offshore mineral exploration within a formal national framework for resource development. The initiative forms part of the Centre’s broader effort to strengthen domestic access to minerals considered important for future industrial and strategic requirements.
The Ministry says development of offshore resources can support India’s efforts towards self-reliance, resource security and sustainable economic growth. It also expects the sector to contribute to supply chains for critical minerals required by emerging technologies.
The first auction therefore sets the framework for exploration and development of offshore mineral blocks, with the two Andaman Sea blocks forming the opening phase of the Centre’s offshore mineral allocation programme.
