Stories
India Eases Offshore Mineral Auction Rules After Initial Failure, Opens New Nicobar Blocks
M
Moneycontrol•29-09-2026, 19:43
India Eases Offshore Mineral Auction Rules After Initial Failure, Opens New Nicobar Blocks
- •The government has relaxed offshore mineral auction rules, reducing the minimum technical bidders required from three to two to encourage private participation and accelerate marine resource extraction.
- •The first offshore auction in November 2024, offering 13 blocks including seven near Great Nicobar Island, was annulled in December 2025 due to a lack of bids and insufficient qualified bidders.
- •India has identified approximately 5.89 lakh sq km within its Exclusive Economic Zone as prospective areas for offshore minerals, crucial for securing supply chains for its green energy transition.
- •The Ministry of Mines has notified two new offshore areas near Great Nicobar Island—West Sewell Ridge-01 (1,000 sq km) and Sewell Rise-01 (632 sq km)—for composite licenses for polymetallic nodules and crusts.
- •These new areas, totaling 1,632 sq km in the Andaman Sea, are distinct from the previously offered Great Nicobar blocks and aim to allow exploration to establish mineral potential before eventual mining.
Key Questions Answered
The government eased offshore mineral auction rules to encourage private participation and speed up the auction of marine resource blocks after the first round failed.
The Ministry of Mines revised four provisions under Rule 9 of the Offshore Areas Mineral (Auction) Rules, 2024, cutting the minimum required technical bidders from three to two.
The Ministry has notified West Sewell Ridge-01 covering 1,000 sq km and Sewell Rise-01 covering 632 sq km in the Andaman Sea for composite licences to explore polymetallic nodules and crusts.
