- 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.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Seabed nodules can add to domestic supply of nickel, cobalt, copper and manganese, which are used in batteries and clean energy technology.
- A transparent auction route may draw private and global bidders into offshore exploration.
- Offshore deposits can supply critical minerals for clean energy and electronics, reducing import dependence.
- Opens a new frontier for private and public investment in the blue economy.
Problems
- Environmental rules for exploration and exploitation in the EEZ are still being finalised, and deep-sea mining impacts are poorly understood.
- Mineral potential is not yet established, so systematic exploration is needed before development.
- Deep-sea mining technology is costly and not yet proven at scale for India.
- Seabed mining risks harming marine ecosystems and biodiversity.
Way forward
- Finalise the environmental baseline and management plan guidelines before work begins.
- Link offshore output to domestic processing, such as the planned Critical Mineral Processing Park on the eastern coast.
- Build scientific and technological capability, with rigorous environmental impact assessment before extraction.
- Partner with research institutions and experienced explorers under transparent auctions.
Put in your answer
Critical Mineral Processing Park: A park coming up on the eastern coast is meant to support processing of offshore minerals.
Revised block design: After stakeholder feedback, the Ministry enlarged nodule and crust blocks for more operational flexibility.
Offshore Areas Mineral (Auction) Rules, 2024: Rules framing the auction of offshore blocks under the 2002 Act.
Strategic uses of the minerals: The minerals matter for advanced manufacturing, clean energy, electric mobility and electronics.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The two offshore mineral blocks put up for auction by the Ministry of Mines are located in the Andaman Sea.
- 2.The blocks are being offered for grant of a Composite Licence under the Offshore Areas Mineral (Development and Regulation) Act, 2002 and the Offshore Areas Mineral (Auction) Rules, 2024.
- 3.The Mines and Minerals (Development and Regulation) Act, 1957 alone governs this auction, as India has no separate law for offshore minerals.
Which of the statements given above is/are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.The two offshore blocks being auctioned are located in the Andaman Sea.
True. Sewell Rise-01 and West Sewell Ridge-01 are in the Andaman Sea.
2.The blocks are being offered for grant of a Composite Licence.
True. The auction is for Composite Licence.
3.The blocks contain polymetallic nodules and crusts that host cobalt, nickel, manganese and copper.
True. The release lists cobalt, nickel, manganese, copper and rare earth elements.
4.The two blocks together cover over 1,632 square kilometres.
True. The combined area is over 1,632 sq km.
5.The auction is conducted through an electronic platform of MSTC.
True. Details and the electronic auction are on the MSTC auction platform.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.