Secretary, Ministry of Mines Virtually Launched Auction of Two Offshore Mineral Blocks; Urges Active Industry Participation

1. At a Glance

• On 01 Oct 2026, the Ministry of Mines opened an auction for two offshore mineral blocks in the Andaman Sea. The winning bidder gets a Composite Licence. [1]
• The blocks contain polymetallic nodules and crusts. These host cobalt, nickel, manganese, copper and rare earth elements (REEs), which are needed for clean energy, electric vehicles, electronics and strategic uses. [1]
• The auction runs under the Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR Act), as amended in 2023, and the Offshore Areas Mineral (Auction) Rules, 2024. [1][2]
• Why it matters for UPSC: it links critical minerals, the blue economy, maritime zones, deep-sea mining ecology and the strategic Andaman & Nicobar region. It overlaps GS-I (resource distribution), GS-III (economy, environment, security) and Prelims (law, geography).

2. Why in the News

• 01 Oct 2026: Shri Keshav Chandra, Secretary, Ministry of Mines, launched the auction virtually. Shri Kadam Sandeep Vasant, Joint Secretary and Administering Authority, was present. [1]
• Blocks: Sewell Rise-01 (southern part of Sewell Rise) and West Sewell Ridge-01 (off Great Nicobar Island). Together they cover over 1,632 sq km. [1]
• The Secretary called offshore minerals a "new frontier". He asked industry to take part actively and to develop the resources in an environmentally responsible way. [1]

3. Background & Evolution

• 2002: The OAMDR Act was enacted to regulate minerals in India's offshore areas. [1][4]
• Aug 2023: Parliament passed the OAMDR Amendment Bill, 2023. It made auction the required mode for allocating offshore mineral blocks. [2]
• 17.08.2023: The amendment came into force. It introduced a transparent, non-discretionary auction process. [6]
• Rules process: The Ministry first published draft auction rules for public consultation [7]. The final Offshore Areas Mineral (Auction) Rules, 2024 were notified by G.S.R. 502(E) dated 14.08.2024. [5]
• 28.11.2024: The first-ever tranche of offshore block auctions was launched, with 13 blocks in the Arabian Sea and Andaman Sea. [3][4]
• Outreach for Tranche 1: a webinar and roadshows in Gujarat and Kochi. [8][9][10]
• Tranche 1 timeline: tender documents went on sale from 03 Dec 2024, and bids were due by end-Feb 2025. [4]
• 01 Oct 2026: auction of the two Andaman Sea blocks launched (current event). [1]

4. Core Static Facts

Current auction schedule [1]:

5. Multi-Dimensional Analysis

Economic

• Offshore minerals add to domestic supply of cobalt, nickel, copper, manganese and REEs. These are inputs for EV batteries, clean energy and electronics, and India depends heavily on imports for them. [1]
• Bidders quote a share of the value of mineral dispatched, so the government's revenue rises when output rises. [5]
• The 10% Offshore Areas Mineral Trust levy pays for offshore exploration and related welfare. [5]

Environmental

• Deep-sea nodule and crust extraction can disturb seabed habitats and stir up sediment plumes. This is why the Secretary stressed "environmentally responsible" development. [1]
• Rules 10(5) and 18(3) require all environmental and other approvals before exploration or production starts. [4]
• West Sewell Ridge-01 lies off Great Nicobar, an ecologically sensitive island area that also hosts the separate Great Nicobar development project. (General context; not in the retrieved sources.)

Geopolitical / Strategic

• The Andaman Sea blocks sit near the Six/Ten Degree Channel and Malacca Strait approaches. Exploration there strengthens India's presence in its own maritime zones. The PIB release calls them "strategically significant". [1]
• Building domestic supply of critical minerals reduces reliance on concentrated foreign supply chains, especially for REEs. [1]
• The ISA contribution applies beyond 200 NM, which ties India's national regime to the international seabed regime under UNCLOS. [5]

Legal / Governance

• The 2023 amendment replaced discretionary allotment with transparent e-auction, in line with the onshore MMDR reforms. [2][6]
• The Union holds jurisdiction over offshore areas. Allotment is run by the Ministry of Mines' Administering Authority, not by coastal states. [1][4]

Scientific / Technological

• Nodules and crusts need deep-sea survey, sampling and recovery technology. The Secretary urged bidders to adopt "appropriate technological capabilities". [1]
• The Composite Licence model (explore first, then produce) suits blocks with little prior geological data. [3]

6. Recent Developments (last 12–18 months)

• 01 Oct 2026: auction launched for Sewell Rise-01 and West Sewell Ridge-01, with tender sale opening the same day. [1]
• Nov–Dec 2026: pre-bid conference on 04 Nov, queries close 13 Nov, bids due 28 Dec 2026. [1]
• 2025: Ministry of Mines Year End Review lists offshore auctions among its policy initiatives. [11]
• Limitation: the retrieved sources do not say how the first tranche (Nov 2024) ended, i.e. how many blocks were awarded or annulled. Check this before using it in an answer.

7. Prelims Hooks

• India's first-ever offshore mineral block auction was launched on 28 Nov 2024, with 13 blocks. [3][4]
• The OAMDR Act, 2002 was amended in 2023, effective 17 Aug 2023, to make auction mandatory. [2][6]
• The Offshore Areas Mineral (Auction) Rules were notified on 14 Aug 2024 via G.S.R. 502(E). [5]
• Only two operating rights exist offshore: Production Lease and Composite Licence. [6]
• The offshore Composite Licence is an exploration licence-cum-production lease. [4]
• The auction is a two-round ascending forward online e-auction, with bids quoted as a % of the value of mineral dispatched. [5]
• The Offshore Areas Mineral Trust levy is 10% of royalty. [5]
• An ISA contribution is payable only for blocks beyond 200 NM. [5]
• Under the OAMDR Act, "offshore area" covers territorial waters, continental shelf, EEZ and other maritime zones. [4]
• West Sewell Ridge-01 lies off Great Nicobar Island. Sewell Rise-01 lies in the southern Sewell Rise. Both are in the Andaman Sea. [1]
• Tranche 1 by mineral: construction sand off Kerala, lime mud off Gujarat, polymetallic nodules and crusts off Great Nicobar. [4]
• Auctions run on the MSTC platform. [1]
• Nodal body: Ministry of Mines, not the Ministry of Earth Sciences. [1]

8. Selling the Right Before Anyone Knows What Is Down There

• The government is auctioning blocks it has hardly surveyed
• The Composite Licence (explore first, then produce) is used because these blocks have little geological data [3][4].

• So bidders are pricing a resource that nobody has measured properly. Some may bid low to cover that risk, and some may not bid at all.

• The bid is a share of future output, so a bid is only a promise

• Bidders quote a % of the value of mineral dispatched (sent out of the mine) [5].

• If no nodules are ever lifted, that percentage earns the state nothing. Only the one-time payments (bid security, upfront payment, performance security) bring in money early [5].

• The technology to mine nodules at commercial scale is not proven anywhere

• The Secretary himself asked bidders to bring "appropriate technological capabilities" [1]. That shows the capability is not assumed.

• Even the international regime has no final rules for commercial mining. The ISA is still developing its "Mining Code" (its rulebook for seabed mining) [16].

• We do not yet know whether the first tranche succeeded

• The sources do not report how many of the 13 Tranche-1 blocks were actually awarded [4].
• Before you write that India has "entered" seabed mining, check whether any block from 2024 has reached the production stage.

9. Who Gets Asked, and When

• Only other ministries are consulted before a block is notified
• Before a block is notified, the law requires the Ministry of Mines to consult MoEFCC, the Department of Fisheries and the Ministry of Earth Sciences. Government says none of them objected [14].

• This is consultation inside the government. The sources mention no step where fishers, island councils or local communities are heard before a block is put up for sale.

• Environmental clearance comes after the sale, not before

• Rules 10(5) and 18(3) say the winning bidder must get environmental and other permits before starting operations [4].
• So the block is sold, and upfront money is paid, before any block-specific environmental impact assessment (EIA, a study of likely damage) is done.

• Once a company has paid and the state has earned money, there is pressure on the regulator to clear the project rather than refuse it.

• The law gives the duty to protect the environment to the same Union government that sells the blocks

• The amended Act tells the Central Government to protect the environment by preventing or controlling pollution from exploration and production [17].

• The Ministry of Mines also runs the auction and earns from it [1]. One government is both seller and guardian, and the law sets up no separate watchdog for offshore blocks.

• The location makes this sharper

• West Sewell Ridge-01 lies off Great Nicobar [1]. Seven of the first tranche's blocks were also there [4].
• Many blocks are piling up in one sensitive island region. Each is assessed on its own, so no one measures their combined effect.

10. The Case for Not Mining the Seabed Yet — and India's Answer

• The strongest objection: we do not understand the deep sea well enough to mine it
• IUCN supports a moratorium (a pause) on deep-seabed mining. The pause would last until the risks are fully understood, impact assessments are rigorous and open, and the precautionary principle (do not act while serious harm is uncertain) is applied [15].

• IUCN Resolution 122 also asks for circular-economy policies (reuse and recycling) and public consultation first [15].

• India's first answer: these are our waters, not the global commons

• The ISA controls mining only in "the Area", the seabed beyond national jurisdiction. Mining there needs an ISA contract [16].

• Sewell Rise and West Sewell Ridge lie in India's own maritime zones. That is why the ISA levy applies only beyond 200 NM [5]. A global pause would not legally bind these blocks.

• India's second answer: import dependence is a real security risk

• Cobalt, nickel and REEs are needed for EVs and clean energy, and India depends heavily on imports for them [1].

• What the objection gets right

• Being inside the EEZ (Exclusive Economic Zone) changes who makes the rules. It does not change the science. Nodule beds near Great Nicobar are no better understood than those in the open ocean.
• So the honest position is this: India may mine, but only with standards at least as strict as those it argues for at the ISA.

11. What Should Happen Before Any Nodule Is Lifted

• Ministry of Mines: use the exploration stage to collect environmental data, not just mineral data
• The Composite Licence already has a separate exploration stage [4]. Production should begin only after an environmental baseline is ready. A baseline is a record of seabed life before mining starts, so later damage can be measured.

• This meets IUCN's demand that risks be understood before mining begins [15].

• Offshore Areas Mineral Trust: spend early on independent ecological research

• The Act already lists "research and studies about the mitigation of adverse effects of offshore mining on the ecology" as a purpose of the Trust [17].

• The Trust gets 10% of royalty [5]. But royalty flows only after production starts. So the studies need early funding from the upfront payments, or they will come too late.

• MoEFCC: publish block-wise EIAs and hear the people who live nearby

• Today the consultation before a block is notified is only between ministries [14].

• IUCN Resolution 122 asks for public consultation and transparent governance [15]. Public hearings in the Andaman & Nicobar Islands, before any production stage, would meet this.

• Ministry of Mines with MoEFCC: study the Great Nicobar blocks together

• Nine blocks so far are off Great Nicobar: 7 in Tranche 1 and 1 now, plus Sewell Rise-01 nearby in the Andaman Sea [1][4]. One combined study of their total effect should replace separate block-by-block reviews.

12. Anchors for Answers

• Data: Over 1,632 sq km offered in the two Andaman Sea blocks [1]; 7 of the 13 Tranche-1 blocks were polymetallic nodules off Great Nicobar [4]; Offshore Areas Mineral Trust = 10% of royalty [5]
• Report/Committee: IUCN Resolution 122: a moratorium on deep-seabed mining until risks are understood and the precautionary principle is applied [15]
• Law/Case: OAMDR Act, 2002 (amended 2023): makes the Centre responsible for preventing pollution from offshore operations [17]; Rules 10(5) and 18(3): clearances needed before operations [4]; UNCLOS: mining in "the Area" only under an ISA contract [16]
• Comparison: ISA: still developing its Mining Code for commercial exploitation. India is auctioning blocks in its own waters before the global rulebook is ready [16]
• Scheme: Deep Ocean Mission (MoES): India's programme to build deep-sea mining technology, which offshore bidders will need

13. Mains Relevance

• GS-I: distribution of key natural resources across the world and India, including ocean resources.
• GS-III: Indian economy and resource mobilisation; infrastructure (energy, minerals); conservation and EIA; security challenges in border and maritime areas.
• GS-II (marginal): government policies and interventions; international institutions (UNCLOS, ISA).
• Possible question stems: 1. Offshore mineral auctions mark India's entry into a new resource frontier. Examine the opportunities and the ecological risks of seabed mining in the Andaman Sea. 2. 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? 3. The 'blue economy' and 'critical minerals' agendas meet in the Andaman & Nicobar Islands. Critically analyse.

14. Related Topics to Study Next

• National Critical Mineral Mission (2025): the umbrella policy for critical mineral security.
• MMDR Amendment Act, 2023: the onshore counterpart; introduced the Exploration Licence and critical mineral auctions. [12]
• Critical mineral block auctions (onshore tranches): for comparing the auction design. [12][13]
• Deep Ocean Mission (MoES): India's scientific programme for deep-sea mining technology (Samudrayaan).
• UNCLOS and the International Seabed Authority: maritime zones and the "Area" beyond national jurisdiction, linked to the ISA levy. [5]
• Great Nicobar Holistic Development Project: ecological and tribal sensitivities in the same region.
• Blue Economy Policy and maritime zones (Territorial Waters Act, 1976): the legal map of offshore areas.
• Rare earth elements and supply chains: the strategic driver behind seabed nodules.

15. Common Errors / Trap Areas

• Wrong ministry: offshore block auctions belong to the Ministry of Mines. The MoES runs the Deep Ocean Mission and India's ISA exploration contract in the Central Indian Ocean Basin. [1]
• Wrong Act: offshore minerals fall under the OAMDR Act, 2002, not the MMDR Act, 1957 (which governs onshore). [1]
• Composite Licence confusion: offshore CL = exploration licence-cum-production lease [4]. Onshore CL under MMDR = prospecting licence-cum-mining lease. Do not mix it up with the onshore Exploration Licence created in 2023 either.
• ISA levy: it does not apply to every block, only to areas beyond 200 NM. [5]
• Dates: Act amended in 2023, Rules in 2024, first tranche in Nov 2024, Andaman auction in Oct 2026. Also note the Act was enacted in 2002, not 2023.