Centre notifies two offshore mineral blocks near Great Nicobar

Why in the News

The Ministry of Mines has notified two offshore mineral blocks near Great Nicobar Island in the Andaman Sea, covering 1,632 square kilometres between them, for the grant of composite licences. The same metals in the same waters found no bidder in the country’s first ever auction of offshore mineral blocks.

What is on the seabed, and what does a composite licence allow?

1. What is down there: Polymetallic nodules and crusts are mineral deposits lying on the ocean floor, nodules scattered like potatoes on sand and crusts formed as a coating on rock.
2. Why India wants them: They hold nickel, cobalt, manganese, copper and rare earth elements, the inputs to batteries, magnets and electronics that India largely imports.
3. What the licence obliges: A composite licence under the Offshore Areas Mineral (Development and Regulation) Act, 2002 is not a mining permit. The winner must first explore the block and establish its mineral potential.
4. The takeaway: The Centre is auctioning the right to prove a deposit rather than a proven deposit, so the bidder carries the exploration cost and the geological uncertainty.

What exactly has been notified?

1. West Sewell Ridge 01: The larger block lies off Great Nicobar Island and covers 1,000 square kilometres.
2. Sewell Rise 01: The second block sits in the southern part of Sewell Rise near the same island and covers 632 square kilometres.
3. What is being sold: The ministry offers both as composite licences over polymetallic nodules and crusts, the same deposit type in the same stretch of sea.
4. Where the blocks lie: Both sit inside India’s exclusive economic zone, the sea belt extending 200 nautical miles from the coastal baseline.

Why did the first offshore auction find no takers?

1. Blocks put to auction: The ministry put 13 offshore mineral blocks to auction in November 2024.
2. Where the failure was: The seven blocks near Great Nicobar Island carrying these minerals drew no bid, so the same ground is back on offer.
3. Auction is the only route: The 2023 amendment to the 2002 Act made competitive bidding the only way to obtain an offshore licence, so a risky block has no negotiated alternative.
4. No rules, no price: The International Seabed Authority, which licenses seabed mining beyond national waters, has issued no exploitation rules, so a bidder cannot price the work.

Where does this sit in India’s critical minerals push?

1. National Critical Mineral Mission: The Ministry of Mines runs a mission launched in 2025 to secure supply of the minerals it has classed as critical, several of which these blocks carry.
2. Deep Ocean Mission: The Ministry of Earth Sciences runs a parallel mission approved in 2021. Its Matsya 6000 submersible is built to carry a crew to the deep seabed.
3. India already holds seabed contracts: The International Seabed Authority has granted India exploration rights for nodules in the Central Indian Ocean Basin and for sulphides on the Central Indian Ridge.

Challenges

1. No technology at depth: Lifting nodules from the deep seabed at commercial scale has not been demonstrated by any country.
2. Ecological objection: The waters adjoin protected ground. Eg. Galathea National Park and leatherback turtle nesting beaches.
3. No refining chain: India lacks the nickel and cobalt refining capacity to turn seabed ore into battery grade metal at home.

Way Forward

1. Publish the resource data: The Geological Survey of India and the National Centre for Polar and Ocean Research should release block level estimates before bids close.
2. Share the exploration risk: Fund a government survey tranche first, so bidders compete over a proven block instead of over a guess.
3. Build the downstream: Tie any offshore nickel and cobalt to refining capacity created under the critical minerals mission.
4. Assess the sea before the lease: Require a cumulative environmental assessment for the Andaman Sea before any production lease is granted.

Conclusion

Two more blocks are on offer on the same terms that drew no bid, so the notification tests whether the obstacle was the terms or the geology. Watch whether a bidder appears at all, since nothing has changed about what is known to lie on that seabed.

Matching Previous Year Question

“[2025] Consider the following statements: Statement I: In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories. Statement II: In India, the Central Government has the power to notify minor minerals under the relevant law. Which one of the following is correct in respect of the above statements? (a) Both Statement I and Statement II are correct and Statement II explains Statement I (b) Both Statement I and Statement II are correct but Statement II does not explain Statement I (c) Statement I is correct but Statement II is not correct (d) Statement I is not correct but Statement II is correct Answer: (d)”