Govt to launch first-ever offshore mineral blocks auction on Nov 28; 13 mines to be on sale

The Union government will launch the first-ever auction of offshore mineral blocks on November 28 to harness India's undersea mineral wealth. The country’s entry into the exploration and development of mineral resources across its maritime zones, including the territorial waters, continental shelf, and exclusive economic zone (EEZ), will unlock the potential of India’s vast offshore resources.

India’s EEZ, spanning over 2 million sq. km., holds vast deposits of minerals vital for securing the country’s strategic and economic interests, a release said.

"With the rapid global shift towards technologies reliant on high-demand minerals, such as cobalt, nickel, rare earth elements (REE), and polymetallic nodules, India must develop diverse mineral sources to reduce dependence on imports and stabilize its supply chains,” the ministry of mines said in a statement.

The auction, part of the amended Offshore Areas Mineral (Development and Regulation) Act, 2002, will allocate 13 mineral blocks in the Arabian Sea and the Andaman Sea. The blocks include deposits of construction sand, limemud, and polymetallic nodules–essential for infrastructure development, high-tech manufacturing, and renewable energy projects.

Union minister of coal and mines G. Kishan Reddy and minister of state Satish Chandra Dubey will officially launch the initiative.

In August last year, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, mandating auction as the mode of allocation of mineral blocks in offshore areas.

This amendment allows the government to streamline the grant of production leases and composite licences for the exploration and extraction of these resources.

"By fostering private sector participation, leveraging advanced technologies, and streamlining regulatory frameworks, this initiative underscores the government’s commitment to sustainable resource utilization and self-reliance," the statement read.

"As India steps into this new frontier of undersea mineral exploration, it aims to not only bolster its industrial and green energy sectors but also secure its position as a global leader in critical minerals."