The government launched the auction of two offshore mineral blocks in the Andaman Sea on Thursday, as reported by The Hindu BusinessLine and Rediff Moneynews. The two blocks – Sewell Rise-01 and West Sewell Ridge-01 – lie in strategically important offshore areas, together spanning more than 1,632 square kilometres. Keshav Chandra, Secretary, Ministry of Mines, virtually launched the auction for grant of composite licence, as reported by the mines ministry. The ministry described the auction as "an important step towards unlocking India's offshore mineral potential and strengthening the country's long-term mineral resource security." The auction is conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended from time to time.
These blocks contain polymetallic nodules and crusts, which host minerals such as cobalt, nickel, manganese, copper and rare earth elements, as reported by The Hindu BusinessLine and Rediff Moneynews. The first block, West Sewell Ridge-01 off Great Nicobar Island, covers 1,000 square kilometres, while the second, Sewell Rise-01, covers 632 square kilometres. These are seabed deposits containing cobalt, copper, manganese and nickel. The ministry highlighted that minerals such as cobalt, nickel, manganese, copper and rare earth elements are important inputs for electric mobility, renewable energy systems, advanced electronics and strategic industries, contributing to India's objectives of self-reliance, resource security and sustainable economic growth. The ministry emphasized that offshore mineral resources could become relevant to India's requirements for technologies associated with clean energy, electric mobility, advanced electronics and strategic industries, with the potential to reduce dependence on external sources.
The auction is conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended from time to time. The ministry notified the Offshore Areas Mineral (Auction) Amendment Rules, 2026 on September 24, which lowered the minimum number of technically qualified bidders needed in a first-attempt auction from three to two. Before the change, an auction was annulled if fewer than three bidders qualified, but it will now be annulled only if fewer than two do. The ministry stated this change was "crucial to improve the success rate of auctions in the first attempt which would help in reducing delays." The auction mechanism provides for competitive allocation of offshore mineral resources, with the ministry gaining authority to auction offshore mineral blocks following amendments to the OAMDR Act in 2023.
This marks the government's second attempt at auctioning offshore minerals, following India's first offshore mineral auction launched on November 28, 2024, with 13 blocks. The previous auction was worth more than ₹1.5 trillion ($16 billion) and drew too little bidder interest, with the government cancelling it in December 2025 after repeated deadline extensions failed to attract enough interest. The first tranche of offshore minerals was worth more than ₹1.5 trillion ($16 billion), as reported by Reuters. The ministry's power to run these auctions dates from 2023, when the Act was amended, enabling "transparent and competitive allocation of offshore mineral resources." The ministry expects this auction to encourage systematic exploration, attract investment and promote the adoption of advanced technologies for offshore mineral exploration and development, with offshore mineral resources being important in the context of technological advancement, clean energy transition and resilient supply chains.
