Govt to auction offshore mineral blocks

The government will launch the first-ever tranche of auction of mineral blocks in the offshore areas of India tomorrow. This landmark initiative marks India’s entry into the exploration and development of undersea mineral resources within its offshore area, an official press release said.

Offshore area of India includes the territorial waters, continental shelf, exclusive economic zone (EEZ), and other maritime zones of India. India’s EEZ of over 2 million sq km holds significant mineral resources. Offshore minerals are vital to securing India’s strategic and economic interests. 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.

In August 2023, Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, mandating auction as mode of allocation of mineral blocks in the offshore areas. This amendment allows the government to streamline the grant of production leases and composite licenses for the exploration and extraction of these resources.

This first tranche includes 13 carefully selected mineral blocks spanning across the Arabian Sea and Andaman Sea, featuring a mix of construction sand, limemud, and polymetallic nodules. These minerals are critical for infrastructure development, high-tech manufacturing, and the green energy transition.

Coal & Mines Minister G. Kishan Reddy and Minister of State for Coal & Mines Satish Chandra Dubey will officially launch this ground-breaking initiative.

By fostering private sector participation, leveraging advanced technologies, and streamlining regulatory frameworks, the Mines Ministry’s initiative underscores the government’s commitment to sustainable resource utilization and self-reliance. 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, the release said.