The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework.

The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed at widening private sector participation in an emerging segment of India’s mineral economy.

Offshore mineral resources are gaining importance amid technological advancement, the clean energy transition and efforts to build resilient supply chains. Cobalt, nickel, manganese, copper and rare earth elements are used in electric mobility, renewable energy systems, advanced electronics and strategic industries.

The development of domestic offshore resources could support India’s objectives of self-reliance, resource security and sustainable economic growth, according to the ministry. Access to additional domestic sources is also expected to help address future industrial and strategic requirements as demand for critical minerals increases.

The auction will be conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024. Amendments to the Act in 2023 empowered the ministry to auction offshore mineral blocks and established a framework for transparent and competitive allocation of these resources.

The government expects the process to encourage technological innovation and increase participation by private companies in offshore mineral exploration. The auction marks an expansion of India’s mineral allocation programme beyond land-based resources and could help develop capabilities in surveying, extraction and resource management in offshore areas.