Economy

Offshore Areas Mineral auction (Andaman Sea polymetallic nodules)

GS3 Mineral resources, ocean resourcesPrelims and Mains

In the news since 1 October 2026 · last on 13 October 2026

Why in news
On 13 October 2026 the Ministry of Mines held an outreach programme in New Delhi on the auction of two offshore mineral blocks in the Andaman Sea. The Notice Inviting Tender was issued on 1 October 2026.
What it is
The offshore mineral auction offers seabed blocks in India's maritime zones for exploration and development of minerals. It runs under the Offshore Areas Mineral (Development and Regulation) Act, 2002. The two blocks on offer hold polymetallic nodules and crusts, which carry metals such as nickel, cobalt, copper and manganese.
Blocks offered
Sewell Rise-01 and West Sewell Ridge-01 in the Andaman Sea are offered for auction.
Type of licence
The blocks contain polymetallic nodules and crusts and are offered for a Composite Licence.
Area
The total area offered is 1,632 sq km: 632 sq km plus 1,000 sq km.
Legal framework
The auction is held under the 2002 Act, as amended in 2023, and the Offshore Areas Mineral (Auction) Rules, 2024.
Exploration support
NMEDT presented a scheme for partial reimbursement of exploration costs for offshore Composite Licence holders.
Bid deadline
The last date for submitting bids is 28 December 2026.
Blocks
Sewell Rise-01 and West Sewell Ridge-01, in the Andaman Sea, together cover over 1,632 sq km.
Licence type
The auction is for grant of a Composite Licence.
Legal basis
The auction follows the 2002 Act and the Offshore Areas Mineral (Auction) Rules, 2024.
Platform and timeline
The auction runs on the MSTC platform; bids are due by 28 December 2026, 17:00 IST.
Minerals
The blocks hold polymetallic nodules and crusts with cobalt, nickel, manganese, copper and rare earth elements.

Don’t confuse with Composite Licence vs other licences: A Composite Licence covers both exploration and production in one grant. Do not mix it with a plain prospecting or exploration-only permit.

Don’t confuse with Offshore Areas Act vs MMDR Act: Offshore blocks fall under the Offshore Areas Mineral (Development and Regulation) Act, 2002. Onshore mining falls under the MMDR Act, 1957.

Don’t confuse with Composite Licence vs Production Lease: A composite licence allows exploration and then production under one licence. A production lease covers only mining.

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Each time it was in the news

  1. 13 October 2026

    On 13 October 2026 the Ministry of Mines held an outreach programme in New Delhi on the auction of two offshore mineral blocks in the Andaman Sea. The Notice Inviting Tender was issued on 1 October 2026.

  2. 1 October 2026

    On 1 October 2026, the Ministry of Mines Secretary virtually launched the auction of two offshore mineral blocks in the Andaman Sea for grant of Composite Licence. Bids can be submitted up to 28 December 2026.