Discuss how the 2023 amendment to the OAMDR Act, 2002 changes the governance of India's offshore mineral resources. How far does it serve the goal of critical mineral security?

The Offshore Areas Mineral (Development and Regulation) Act, 2002 governs minerals in India's territorial waters, continental shelf and EEZ [4]. Its 2023 amendment came into force on 17 August 2023 [2]. It replaced discretionary allotment with transparent auction. This changes governance a great deal, but the gains for critical mineral security are still only prospective.

Changes in governance

• Auction-only allocation: Private entities can get a Production Lease or Composite Licence only through competitive bidding [1]. The auction is a two-round online e-auction, and bids are quoted as a % of the value of mineral dispatched [3].
• Composite Licence: This is a two-stage right, with exploration first and production after it. It suits blocks that have been surveyed very little [4].
• Tenure and anti-concentration: Production leases now run for a fixed 50 years with no renewal. There is a cap on the area one person can hold, and atomic minerals are reserved for PSUs [1].
• New institutions: An Offshore Areas Mineral Trust gets 10% of royalty [3]. It funds exploration, ecological research and disaster relief [7]. An ISA contribution is payable for blocks beyond 200 NM, which aligns the regime with UNCLOS [3].
• Safeguards: MoEFCC and the Department of Fisheries must be consulted before a block is notified [5]. Bidders must obtain environmental clearances before operations begin under Rules 10(5) and 18(3) [4].

How far it serves critical mineral security

Gains

• Domestic supply pipeline: Tranche 1 in 2024 offered 7 polymetallic nodule blocks off Great Nicobar [4]. The October 2026 auction of Sewell Rise-01 and West Sewell Ridge-01 covers over 1,632 sq km. It targets cobalt, nickel, copper, manganese and REEs, which are needed for EVs and clean energy [6].
• Investor certainty: Long tenure and rule-based allocation make it easier to attract private capital [1].

Limits

• Technology gap: Commercial recovery of nodules is unproven, and the Ministry itself asked bidders to bring "appropriate technological capabilities" [6].
• Deferred returns: Revenue share and Trust royalty flow only after minerals are dispatched [3].
• Ecological risk: Block-specific clearances come after the sale [4]. Consultation happens only between ministries, not with the public [5]. Blocks are also clustering off ecologically fragile Great Nicobar.

The amendment builds a transparent, investor-friendly legal framework, but it serves critical mineral security only partly: it creates rights to mine, not actual supply. Several steps would help turn auctions into secure supply: linking it with the Deep Ocean Mission's technology work, funding environmental baselines from the Trust early, and holding public hearings in the Andaman & Nicobar Islands. This would also fit SDG 14 and India's blue economy vision.