New Delhi [India]: The Ministry of Mines will launch the first-ever auction of mineral blocks in India’s offshore areas on Thursday, marking a major step in the country’s exploration of undersea mineral resources.
This groundbreaking initiative targets India’s offshore territories, including its territorial waters, continental shelf, exclusive economic zone (EEZ), and other maritime zones. The EEZ alone spans over 2 million square kilometres and is believed to contain significant mineral reserves, the ministry stated.
Strategic Importance of Offshore Minerals
“Offshore minerals are vital to securing India’s strategic and economic interests,” the Ministry of Mines noted in a press release. With the global shift towards high-demand minerals like cobalt, nickel, rare earth elements (REE), and polymetallic nodules, this initiative aims to reduce India’s import dependency and stabilise supply chains critical for advanced manufacturing and the green energy transition.
Regulatory Reforms to Enable Auctions
The auctions follow an amendment to the Offshore Areas Mineral (Development and Regulation) Act, 2002, made in August 2023. The amendment made auctions mandatory for allocating mineral blocks in offshore regions, streamlining processes for granting production leases and composite licences for exploration and extraction.
First Tranche of Blocks
The inaugural tranche features 13 mineral blocks located in the Arabian Sea and Andaman Sea. These include deposits of construction sand, lime mud, and polymetallic nodules, resources critical for infrastructure projects, high-tech industries, and sustainable energy solutions.
Launch Ceremony
The initiative will be formally launched by Union Minister of Coal and Mines G Kishan Reddy and Union Minister of State for Coal and Mines Satish Chandra Dubey.
This move underscores India’s commitment to unlocking its offshore mineral potential while supporting the nation’s technological and green energy ambitions.