On 28 November 2024, Shri G. Kishan Reddy, Union Minister of Coal and Mines, inaugurated India’s first e-auction for mineral blocks in offshore areas. This marks a significant advancement in the country’s efforts to explore and utilize its abundant offshore mineral resources within its Exclusive Economic Zone (EEZ).
The inaugural auction tranche includes 13 mineral blocks located in the Arabian Sea and Andaman Sea, containing valuable minerals such as construction sand, lime-mud, and polymetallic nodules and crusts. These resources are vital for infrastructure development, advanced manufacturing, and the green energy transition.
The launch event was attended by officials from the Ministry of Mines, representatives from other Central Ministries and Departments, diplomats from countries such as South Korea, Indonesia, the Netherlands, the UK, and Australia, along with State Governments, industry leaders, public sector enterprises, potential bidders, and media representatives. This event is considered a historic moment in India’s mining sector.
Speaking at the event, Shri G. Kishan Reddy highlighted this as a landmark occasion, contributing to Prime Minister Shri Narendra Modi’s vision of Viksit Bharat. He underscored the growing demand for critical minerals and reiterated India’s determination to establish itself as a leader in the global critical minerals market. He also announced the upcoming launch of the National Critical Mineral Mission, aimed at strengthening critical mineral supply chains within the country.
The Minister provided an overview of government reforms introduced to enhance ease of doing business in the mining sector. He noted that since the auction system began in 2015, 438 mineral blocks have been auctioned, significantly boosting state revenues. He emphasized that the offshore mining initiative aims to reduce dependence on critical mineral imports, promote sustainable practices, and build domestic capacities. He urged stakeholders to actively participate in exploration, mining, and technology development to position India as a global leader in offshore mining.
Shri V. L. Kantha Rao, Secretary of the Ministry of Mines, outlined the efforts by the Geological Survey of India (GSI) over the last 40–50 years in seabed mineral exploration. He mentioned that approximately six lakh sq. km of offshore areas with mining potential have been identified. All exploration data has been consolidated in the National Geological Data Repository (NGDR) portal for easy access.
He also highlighted the government’s provision of competitive royalty rates for offshore minerals to encourage industry participation. The blocks selected for auction were chosen carefully to maximize potential. Shri Rao urged industry players to take advantage of this opportunity and assured them of the government’s full support in facilitating offshore mining activities.
The sale of tender documents for these offshore mineral blocks will commence on 3 December 2024, with the submission deadline set for the end of February 2025. The government plans to continue this initiative by progressively auctioning additional offshore mineral blocks to enhance India’s mineral security, technological progress, and sustainable development.
