Ministry of Mines Organises Outreach Programme on Auction of Offshore Mineral Blocks

1. At a Glance

• On 13 Oct 2026 the Ministry of Mines held an Outreach Programme in New Delhi for prospective bidders on two offshore mineral blocks in the Andaman Sea: Sewell Rise-01 and West Sewell Ridge-01. [1]
• Both blocks hold polymetallic nodules and crusts, which contain nickel, cobalt, copper and manganese. They are offered for a Composite Licence. [1]
• The auction runs under the Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR Act), amended in 2023, and the Offshore Areas Mineral (Auction) Rules, 2024. [1]
• It ties critical-mineral security, the energy transition and the Blue Economy to India's Exclusive Economic Zone (EEZ) governance. That makes it relevant to Prelims (Acts, licences, minerals) and to GS-III (resources, environment). [1]

2. Why in the News

• The Ministry issued a Notice Inviting Tender (NIT) dated 1 Oct 2026 for operating rights over two Andaman Sea blocks covering 1,632 sq km in total. [1]
• The outreach programme on 13 Oct 2026 included presentations by GSI, SBICAPS (Transaction Advisor), MSTC (auction platform) and NMEDT (exploration reimbursement scheme). [1]
• An earlier PIB release had announced that the Ministry would launch the auction of offshore mineral blocks in the Andaman Sea. [8]

3. Background & Evolution

• 2002: The OAMDR Act, 2002 was enacted. It is the parent law for minerals in India's offshore areas. [1][4]
• 2002: India got an exploration contract from the International Seabed Authority (ISA) for polymetallic nodules over about 75,000 sq km in the Central Indian Ocean Basin (CIOB). [9]
• 2016: India signed a second ISA contract, for polymetallic sulphides, covering 10,000 sq km along the Indian Ocean ridges. [9]
• 2017: The ISA extended India's exclusive rights over CIOB nodules by five years. [10]
• Aug 2023: Parliament passed the OAMDR Amendment Bill, 2023, making auction the mandatory way to allot offshore mineral blocks. [3] It took effect on 17.08.2023. [7]
• Dec 2023: The Ministry published draft auction rules for public consultation. They provided for an ascending forward online electronic auction. [6]
• 6 Jun 2024: The Offshore Areas (Existence of Mineral Resources) Rules, 2024 were notified (G.S.R. 315(E)). [7]
• 28 Nov 2024: The first-ever tranche of offshore auctions was launched with 13 blocks in the Arabian Sea and Andaman Sea: construction sand, lime mud, and polymetallic nodules and crusts. [2]
• Dec 2024–Jan 2025: The Ministry held a webinar and roadshows for the first tranche, including in Gujarat and Kochi. [11][12][13]
• Sep 2025: India signed a third ISA contract, for sulphides in the Carlsberg Ridge area. [9]
• 1 Oct 2026: The NIT for the two Andaman Sea Composite Licence blocks was issued. [1]

4. Core Static Facts

Item	Fact
Nodal ministry	Ministry of Mines [1]
Parent Act	OAMDR Act, 2002, amended 2023 [1]
Auction Rules	Offshore Areas Mineral (Auction) Rules, 2024, as amended [1]
Blocks	Sewell Rise-01: 632 sq km. West Sewell Ridge-01: 1,000 sq km. Total 1,632 sq km [1]
Location	Andaman Sea [1]
Mineral	Polymetallic nodules and crusts (Ni, Co, Cu, Mn) [1]
Concession type	Composite Licence: a two-stage right covering exploration and then production [1][4]
Exploration period (CL)	3 years, extendable by 2 years on application (per the 2023 Bill) [4]
Production lease	Fixed 50 years; the renewal provision was removed [4]
Atomic minerals	Operating rights only for PSUs [4]
Pre-2023 applications	Became ineligible [4]
Auction format	Two-stage ascending forward e-auction; the bid is a % of the value of mineral [2]
Geological input	Geological Survey of India (GSI) [1]
Transaction Advisor	SBI Capital Markets Ltd (SBICAPS) [1]
Auction platform	MSTC e-auction portal [1]
Exploration support	NMEDT: partial reimbursement of exploration expenses for Composite Licence holders [1]
Processing link	Critical Mineral Processing Park planned on India's eastern coast [1]

Auction schedule (2026) [1]

• Tender documents on sale from 1 Oct.
• Pre-bid conference: 4 Nov.
• Last date for queries: 13 Nov.
• Last date to buy tender documents: 21 Dec.
• Last date for bids: 28 Dec.

5. Multi-Dimensional Analysis

Economic

• The Secretary linked offshore minerals to supply-chain resilience, economic growth, technological advancement, the energy transition and manufacturing competitiveness. [1]
• A Critical Mineral Processing Park on the east coast is meant to add value onshore, not just extract the minerals. [1]
• NMEDT's partial reimbursement of exploration costs lowers the risk for early-stage investors, since the geology is still unproven. [1]

Environmental

• Terms of Reference and Guidelines for Baseline Environmental Data Collection and Environmental Management Plans for offshore exploration and exploitation in the EEZ have been sent to Central Ministries for comments. They are not yet final. [1]
• Bidders must obtain all required consents before production starts. [5]
• The PIB release talks of "responsible development" while the environmental framework is still being finalised. This gap is a strong Mains point.

Legal / Constitutional

• The 2023 amendment replaced discretionary allotment with mandatory auction and set a 50-year production lease with no renewal. [3][4]
• Atomic minerals are reserved for PSUs, which keeps strategic minerals under state control. [4]
• The Andaman blocks fall under national (EEZ) jurisdiction. India's CIOB nodule work in the Area beyond national jurisdiction comes under the ISA. [1][9]

Scientific / Technological

• The release itself says "systematic exploration will be essential" to establish what the blocks actually hold, which is why a Composite Licence is used rather than a direct production lease. [1]
• Related capacity comes from the Deep Ocean Mission. Its OMe 6000 autonomous underwater vehicle surveyed a nodule site at about 5,271 m depth in Dec 2022. [14]

Ethical / Governance

• E-auction through MSTC, a Transaction Advisor and open-house consultations support transparency. [1]
• Responsive regulation: the Ministry enlarged the nodule and crust blocks after stakeholder feedback. [1]

Geopolitical / Strategic

• Ni, Co, Cu and Mn are inputs for batteries and emerging technologies. Domestic offshore sources reduce import dependence. [1]
• The blocks are in the Andaman Sea, and first-tranche nodule blocks were off Great Nicobar Island. This connects to India's maritime presence in the eastern Indian Ocean. [2]

6. Recent Developments (last 12–18 months)

• 2 Apr 2025: The government told Parliament that bidders must secure all consents before production under the OAM (Auction) Rules, 2024. [5]
• Sep 2025: India's third ISA contract was signed (Carlsberg Ridge sulphides). [9]
• Late Sep 2026: PIB announced the Ministry would launch the Andaman Sea offshore auction. [8]
• 1 Oct 2026: NIT issued and tender sale opened. [1]
• 13 Oct 2026: Outreach Programme held in New Delhi, with revised block configurations and draft environmental ToR/Guidelines circulated. [1]
• I could not find the outcome of the first (Nov 2024) tranche on whitelisted sources, so it is not covered here.

7. Prelims Hooks

• Sewell Rise-01 (632 sq km) and West Sewell Ridge-01 (1,000 sq km) are in the Andaman Sea. [1]
• Total area offered in the 2026 NIT is 1,632 sq km. [1]
• Both blocks contain polymetallic nodules and crusts, offered under a Composite Licence. [1]
• Polymetallic nodules contain nickel, cobalt, copper and manganese. [1]
• Governing law is the OAMDR Act, 2002, amended in 2023, with effect from 17 Aug 2023. [1][7]
• The 2023 amendment made auction mandatory for offshore mineral blocks. [3]
• Offshore production lease term is 50 years, with no renewal. [4]
• Offshore operating rights for atomic minerals go only to PSUs. [4]
• The first-ever offshore auction tranche was launched on 28 Nov 2024 with 13 blocks. [2]
• First-tranche split: 3 construction sand (off Kerala), 3 lime mud (off Gujarat), 7 polymetallic nodules/crusts (off Great Nicobar). [2]
• The winning bid is the highest percentage of value of mineral dispatched, in a two-stage ascending forward e-auction. [2]
• The auction platform is MSTC; the Transaction Advisor is SBICAPS. [1]
• NMEDT partially reimburses exploration expenses for offshore Composite Licence holders. [1]
• India's 2002 ISA contract covers about 75,000 sq km of the CIOB for nodules. [9]

8. Selling the Blocks Before the Environment Rules Are Ready

• The order of steps is the wrong way round
• The bid deadline is 28 Dec 2026 [1].
• On 13 Oct 2026, the rules for baseline environmental data were still only a draft sent to ministries for comments [1]. Baseline data is a record of what lives on the seabed before any digging starts.

• So companies may win licences and begin exploring before anyone has fixed what they must measure first.

• The legal check comes too late to protect the starting picture

• Bidders must get all consents only before production [5].
• Exploration itself disturbs the seabed. Ships, sampling and test lifting all touch the nodule field.

• If the baseline is not recorded before exploration, nobody can later prove how much damage mining caused, because there is no 'before' to compare with.

• The world body has moved more slowly for exactly this reason

• In international waters, commercial mining has not started. The International Seabed Authority (ISA) is still writing its mining code (the rulebook for commercial extraction) [20].
• The IUCN (a global conservation body) passed Resolution 122 in 2021. It called for a moratorium (a halt) until the risks are understood, and for impact studies based on full baseline surveys [18].
• India's Andaman blocks are inside its own EEZ (the sea zone up to 200 nautical miles where only India controls resources). So the ISA's caution does not legally bind India here. India is setting its own standard, and right now that standard is unfinished.

9. Why Bidders May Stay Away

• Bidders are asked to price a resource nobody has measured
• The winning bid is a % of the value of mineral dispatched [2].
• But the release itself admits that systematic exploration is still needed to know what the blocks hold [1].

• A company has to promise a share of revenue from a deposit whose size and grade are unknown. Many firms will bid low, or not bid at all.

• Too few bidders can cancel the whole auction

• Under the first offshore tranche's tender document, if fewer than 3 technically qualified bidders (firms that pass the technical check) take part, the auction is annulled (cancelled) [17].

• The note could not find out what happened to that first tranche of 13 blocks. Even so, the Ministry has come back with just 2 blocks and has enlarged the nodule blocks after industry feedback [1]. That suggests it is trying to make the offer attractive enough to draw bidders.

• India's own record shows how slow deep-sea work is

• India has held ISA rights over nodules in the Central Indian Ocean Basin since 2002 [9]. These were extended in 2017 [10].
• In 2022, more than 20 years later, the work was still at the survey stage: a vehicle tested a nodule site at about 5,271 m [14].

• Yet a private Composite Licence holder gets only 3 years of exploration, plus 2 more [4]. A state programme took decades. A private firm is expected to finish in five years.

• There is no proven way yet to turn nodules into metal

• The Critical Mineral Processing Park on the east coast is still only planned [1].
• Without a place to process the ore, a winning bidder has no clear route from seabed to sale. NMEDT repays only part of exploration costs [1], so most of the risk stays with the bidder.

10. Should India Wait? The Case for a Pause, Answered

• The strongest argument for waiting
• Around 40 countries had backed a precautionary pause on deep-sea mining by late 2025 [19]. A precautionary pause means: do not start until the science shows it is safe.
• The Third UN Ocean Conference (June 2025) said any seabed mining must rest on strict rules that protect biodiversity [19].

• IUCN warns that the deep sea is poorly understood and that current draft rules do not properly assess the environmental impact [18]. Damage on a slow-growing seabed may not be reversible.

• The honest answer

• What the critics get right: India is auctioning before its own environmental rules are final (see above). On this point the critics are correct, and India should fix it.
• What they miss: the licence offered is a Composite Licence, which starts with exploration, not mining. Done properly, exploration is how India collects the seabed data that critics say is missing.
• The strategic reason: nickel, cobalt, copper and manganese are battery metals. India depends on imports for them [1]. Waiting for the ISA does not fit here, because these are India's own EEZ waters, not international seabed.
• Fair conclusion: exploring now is defensible. Allowing production without a finished baseline would not be. The test is whether the environmental ToR is final and binding before any licence is granted.

11. What Should Happen Before Licences Are Signed

• Ministry of Mines and MoEFCC: make the environmental ToR final and binding before licences are granted
• The draft ToR and the Environmental Management Plan guidelines are already circulating [1].

• They should be made part of the licence conditions before the 28 Dec bid deadline [1]. Then bidders know the full cost of compliance when they price their bid.

• Ministry of Mines: require baseline surveys before any disturbance, and make the data public

• IUCN Resolution 122 asks for impact assessments built on comprehensive baseline studies [18]. Use that as the standard.

• Publishing the data lets independent scientists check the company's claims.

• MoES and Ministry of Mines: share Deep Ocean Mission knowledge with bidders

• MoES has two decades of nodule survey experience in the Central Indian Ocean Basin [9][14].

• Sharing survey methods and data through GSI's block reports [1] would cut the exploration risk that may keep bidders away. That can do more than partial NMEDT repayment alone.

• Ministry of Mines: link the processing park timeline to the licence timeline

• A nodule deposit has no value to India if the ore is shipped abroad for processing.
• The east coast processing park [1] should be ready by the time the exploration period ends (3+2 years [4]).

12. Anchors for Answers

• Data: 1,632 sq km offered across 2 Andaman Sea blocks in the Oct 2026 NIT [1]; India's ISA nodule area in the Central Indian Ocean Basin is about 75,000 sq km, held since 2002 [9]; around 40 countries backed a precautionary pause on deep-sea mining by late 2025 [19]
• Report/Committee: IUCN Resolution 122 (2021), which calls for a moratorium and baseline-based impact studies [18]; Third UN Ocean Conference (June 2025), which called for a strict, biodiversity-protecting ISA mining code [19]
• Law/Case: OAMDR Act, 2002 (amended 2023): mandatory auction, 3+2-year exploration under a Composite Licence [3][4]; consents needed only before production under the OAM (Auction) Rules, 2024 [5]; UNCLOS Part XI (ISA) governs the international seabed, not India's EEZ [9]
• Comparison: ISA: no commercial mining in international waters until the mining code is final [20]. India is auctioning EEZ blocks while its own environmental ToR is still a draft [1]
• Scheme: NMEDT gives partial repayment of exploration costs [1]; Deep Ocean Mission (MoES) provides the deep-sea survey technology and data base [14]

13. Mains Relevance

• GS-III:
• Infrastructure (energy and minerals)
• Conservation, environmental pollution and degradation, EIA
• Indian economy: mobilisation of resources

• Science and technology: indigenisation

• GS-II: Government policies and interventions; transparency and accountability.

• GS-I: Distribution of key natural resources, including ocean resources.
• Question stems: 1. 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. 2. Discuss the strategic significance of polymetallic nodules for India's critical mineral security, and the technological and environmental challenges in harnessing them. 3. Distinguish between India's seabed mineral exploration within its EEZ and in the Area beyond national jurisdiction. What role does the International Seabed Authority play?

14. Related Topics to Study Next

• MMDR Amendment Act, 2023 / Critical Minerals list: the onshore counterpart of the critical-mineral auction push.
• National Critical Mineral Mission: the policy umbrella for supply-chain security and processing parks.
• Deep Ocean Mission (MoES): the technology base for deep-sea mining (OMe 6000, Samudrayaan). [14]
• International Seabed Authority & UNCLOS Part XI: India's CIOB and ridge contracts. [9]
• Blue Economy policy: the framework for ocean-resource-led growth.
• NMEDT / District Mineral Foundation: the statutory funds under mining law.
• Great Nicobar Project: the strategic and ecological debate in the same region. [2]
• Coastal Regulation Zone and marine EIA: the environmental clearance architecture offshore.

15. NCERT Concepts to Revise

• Polymetallic nodules (Geography): These nickel, cobalt, copper and manganese-rich seabed lumps are the resource being auctioned in the Andaman Sea blocks.
• Exclusive economic zone (Geography): The Andaman blocks lie in India's EEZ, so national law applies rather than the international seabed regime.
• International Seabed Authority (Geography): Governs the international seabed where India holds nodule contracts; knowing it clarifies the EEZ versus Area distinction.
• Offshore mineral blocks auction (Geography): Explains the 2023 amendment and the first 13-block auction that this new tender builds on.
• Deep-sea mining (Geography): Core activity discussed, including the environmental risks and missing international mining rules behind the debate on pausing.
• Critical minerals (Economy): Nickel, cobalt and copper are critical minerals; supply security is the main strategic reason for the auction.

16. Common Errors / Trap Areas

• Wrong ministry: the offshore block auction is run by the Ministry of Mines. The Deep Ocean Mission and ISA contracts sit with the Ministry of Earth Sciences. [1][9]
• Wrong Act: offshore minerals come under the OAMDR Act, 2002, not the onshore MMDR Act, 1957. [1]
• Jurisdiction mix-up: Andaman Sea blocks are in the EEZ (national). CIOB nodules (75,000 sq km) are in the international Area under the ISA. [1][9]
• Licence type: these blocks carry a Composite Licence (exploration then production), not a direct production lease. [1][4]
• First vs current tranche: the first tranche (Nov 2024) had 13 blocks across both seas. The Oct 2026 NIT has 2 blocks, all in the Andaman Sea. [1][2]