The 2023 amendment to the Offshore Areas Mineral (Development and Regulation) Act marks a shift from discretion to auction. Critically examine whether India's offshore mining framework adequately balances resource security with marine ecological safeguards.
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The OAMDR Amendment, 2023 replaced administrative allocation of offshore blocks with mandatory competitive bidding [2]. Its key test is the October 2026 auction of two polymetallic-nodule blocks covering 1,632 sq km in the Andaman Sea [1]. The framework protects resource security well. Its ecological safeguards are still catching up.
Strengths: resource security and transparency
- Critical minerals: the nodules hold nickel, cobalt, copper and manganese, which are battery and energy-transition inputs. Mining them at home cuts import dependence [1].
- Transparency: an MSTC e-auction with a Transaction Advisor (SBICAPS) replaces discretion [1]. The highest percentage of the value of mineral dispatched wins [3].
- Investor certainty: a Composite Licence gives 3+2 years of exploration and then a fixed 50-year production lease [2].
- Strategic control: licences for atomic minerals go only to the government or government companies [2].
- Risk-sharing: NMEDT partly repays exploration costs, and a Critical Mineral Processing Park is planned on the east coast [1].
Weaknesses: ecological safeguards lag behind
- Wrong sequencing: the rules on what seabed data to record before work starts (baseline environmental data) are still drafts sent to ministries for comment. So are the Environmental Management Plan guidelines. Yet bids close on 28 Dec 2026 [1].
- Late safeguard: bidders must get all consents before production [4]. But exploration and sampling also disturb the seabed, so without a recorded "before" picture, later damage cannot be measured.
- Scientific uncertainty: India has held International Seabed Authority (ISA) nodule rights in the Central Indian Ocean Basin since 2002 [5], yet work was still at the survey stage in 2022 [6]. A five-year private exploration window looks ambitious.
- Global caution: commercial mining has not begun in international waters because the ISA's mining code is still unfinished. That code does not bind India's EEZ, but it shows the risks are still unsettled.
- Viability gap: the processing park exists only on paper, which may deter bidders [1].
Way forward
- Make the environmental Terms of Reference final and binding as a licence condition before licences are signed.
- Require public baseline surveys before any disturbance.
- Share data from the Deep Ocean Mission with bidders [6], and match the processing park's timeline to the licence timeline.
Overall, the 2023 shift gives India a transparent, investor-friendly route to critical minerals, but ecological safeguards still trail the auction calendar. Because the licence starts with exploration, India can still use that phase to build the seabed science critics say is missing. Locking in binding baseline standards now would balance resource security with SDG-14 and the precautionary principle.
Sources
- 1Ministry of Mines Organises Outreach Programme on Auction of Offshore Mineral Blocks (PIB, 13 Oct 2026)Andaman blocks and area; minerals; MSTC/SBICAPS; NMEDT; processing park; draft environmental ToR; bid deadline
- 2The Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 (PRS Legislative Research)mandatory competitive bidding; 3+2-year exploration; 50-year lease; atomic minerals reserved for government companies
- 3Ministry of Mines Launches the First Ever Tranche of Auction of Mineral Blocks in the Offshore Areas (PIB, Nov 2024)bid based on percentage of value of mineral dispatched
- 4Licenses for Offshore Mining (PIB, 2 Apr 2025)consents required before production under the OAM (Auction) Rules, 2024
- 5Deep-Sea Exploration Contracts, Parliament reply (Ministry of Earth Sciences)ISA nodule contract in the Central Indian Ocean Basin since 2002
- 6Deep Ocean Mission (PIB)2022 OMe 6000 survey of a nodule site; deep-sea survey capacity