The 'blue economy' and 'critical minerals' agendas meet in the Andaman & Nicobar Islands. Critically analyse.

The blue economy seeks growth from ocean resources while keeping seas healthy. The critical minerals agenda seeks secure supply of cobalt, nickel and rare earths. On 1 October 2026, the Ministry of Mines auctioned two Andaman Sea blocks, Sewell Rise-01 and West Sewell Ridge-01 (off Great Nicobar), covering over 1,632 sq km [1]. In these islands the two agendas both converge and collide.

Convergence: why the agendas meet here

• Resource base: polymetallic nodules and crusts host cobalt, nickel, manganese, copper and REEs, which are needed for EVs and clean energy. This cuts import dependence [1].
• Regional concentration: 7 of 13 first-tranche blocks (Nov 2024) were nodule blocks off Great Nicobar [2].
• Transparent allocation: the OAMDR Act, 2002 (amended 2023) requires auction. Bids are quoted as a % of the value of mineral dispatched, in a two-round e-auction [3].
• Strategic control: the blocks lie in India's own maritime zones. The ISA levy applies only beyond 200 NM [3], so India sets the rules.

Divergence: where they pull apart

• Sequencing: blocks are sold first. Environmental permits are needed only before operations (Rules 10(5), 18(3)) [2], so after payment there is pressure to grant clearance.
• Narrow consultation: before a block is notified, only MoEFCC, Fisheries and MoES are consulted [4]. No step exists for islanders or fishers.
• Seller-cum-guardian: the same Union government that runs the auction is charged with preventing pollution from offshore operations [5].
• Cumulative impact: many blocks off one ecologically fragile island are assessed separately, so no one measures their combined effect.
• Unproven returns: the Secretary sought "appropriate technological capabilities" [1]. Output-linked bids yield little if nothing is lifted [3].

Existing safeguards

• Blocks are carved to exclude 130 Marine Protected Areas and priority coastal biodiversity sites [4].
• The Offshore Areas Mineral Trust (10% of royalty) funds research on reducing mining's ecological harm [3][5].

Overall, the islands offer India mineral security and maritime presence, but the current sequencing puts extraction ahead of ecological understanding. India should:

• use the Composite Licence's exploration stage to build an environmental baseline;
• fund Trust research early, from upfront payments;
• hold public hearings in the islands;
• conduct a cumulative EIA for the Great Nicobar blocks.

Aligned with SDG 14 and the precautionary principle, the blue economy and critical minerals agendas can then strengthen each other.