India Auctions Two Offshore Mineral Blocks in Andaman Sea 2026 | अंडमान सागर में दो अपतटीय खनिज ब्लॉकों की नीलामी

Why in News?

On 1 October 2026, the Ministry of Mines, Government of India, launched the auction of two offshore mineral blocks in the Andaman Sea for the grant of composite licences. The auction was launched virtually by Keshav Chandra, Secretary, Ministry of Mines, in the presence of Kadam Sandeep Vasant, Joint Secretary and Administering Authority, and other officials.

The two blocks are Sewell Rise-01 and West Sewell Ridge-01. Together, they cover more than 1,632 square kilometres and contain polymetallic nodules and crusts associated with minerals such as cobalt, nickel, manganese, copper and rare earth elements.

The announcement is important for India's critical mineral security, marine resource exploration, clean energy technologies, advanced manufacturing and the responsible development of offshore resources.

Where Are the Mineral Blocks Located?

Both blocks are located in the Andaman Sea. Sewell Rise-01 is situated in the southern part of Sewell Rise, while West Sewell Ridge-01 is located offshore of Great Nicobar Island.

The Andaman Sea lies to the east of the Andaman and Nicobar Islands and forms part of the northeastern Indian Ocean region. Its offshore geological formations are relevant to marine mineral exploration.

The two blocks should not be confused with onshore mineral deposits or mines located on Great Nicobar Island itself.

Details of the Two Blocks

The first block, Sewell Rise-01, is located in the southern part of Sewell Rise in the Andaman Sea. The second, West Sewell Ridge-01, lies offshore of Great Nicobar Island.

According to the Ministry, both blocks contain polymetallic nodules and crusts. Their combined area exceeds 1,632 square kilometres. The official announcement does not provide separate area figures for each block or a verified quantity of commercially recoverable minerals.

What Are Offshore Minerals?

Offshore minerals are mineral resources found beneath or on the seabed beyond the coastline. They may occur in sediments, nodules, crusts or other geological formations.

Exploring offshore minerals requires specialised marine surveys, geological investigation, sampling and technical evaluation. Extracting such resources can be more technically complex than mining many deposits on land.

What Are Polymetallic Nodules?

Polymetallic nodules are mineral-rich formations that occur on parts of the deep-ocean floor. They may contain manganese, nickel, cobalt, copper and other elements.

The word polymetallic indicates the presence of multiple metals. Their composition varies by location and geological conditions.

The presence of nodules does not automatically establish that extraction is commercially viable. Resource assessment, environmental evaluation, technology and economics all influence feasibility.

What Are Polymetallic Crusts?

Polymetallic crusts are mineral deposits that can form on hard surfaces of underwater geological features, including seamounts and ridges.

Such crusts may contain strategically valuable metals. Their exploration requires understanding the local geology and marine environment.

Mining or collecting crusts could disturb seabed habitats, so environmental safeguards are particularly important.

Why Is Cobalt Important?

Cobalt is used in several industrial applications, including certain rechargeable battery chemistries, high-performance alloys and specialised equipment.

It is relevant to parts of the electric mobility and energy-storage supply chains. However, not every battery uses cobalt, and technological changes can alter demand for individual minerals.

Why Is Nickel Important?

Nickel is used in stainless steel, alloys and some rechargeable battery technologies. It can contribute to the performance characteristics of certain battery cathodes.

Reliable access to nickel is relevant to industrial production and some clean energy technologies. The economic value of a particular offshore deposit depends on its mineral content and recoverability.

Why Is Manganese Important?

Manganese is widely used in steelmaking and various industrial processes. It is also relevant to certain battery materials.

Polymetallic nodules are often associated with manganese-rich mineral formations, making manganese an important element in marine mineral studies.

Why Is Copper Important?

Copper is an excellent conductor of electricity and is widely used in electrical wiring, motors, transformers and industrial equipment.

Electricity transmission, renewable energy installations and electric vehicles require significant electrical infrastructure, making copper an important industrial metal.

What Are Rare Earth Elements?

Rare earth elements are a group of 17 chemical elements comprising the 15 lanthanides, scandium and yttrium.

They have applications in electronics, magnets, industrial equipment and several advanced technologies. Despite their name, not all rare earth elements are exceptionally scarce in the Earth's crust. Their economic significance often relates to the difficulty of finding, separating and processing suitable deposits.

What Is a Critical Mineral?

A critical mineral is generally a mineral considered important for economic or strategic activities and exposed to significant supply risks.

Criticality depends on a country's industrial requirements, supply concentration, available substitutes and other factors. It is not simply a measure of how rare a mineral is in nature.

The Ministry linked the Andaman Sea blocks with the goal of strengthening India's long-term mineral security.

What Is Mineral Security?

Mineral security refers to reliable access to minerals required for industry, infrastructure, technology and other strategic needs.

Countries may improve mineral security through domestic exploration, diversified imports, recycling, material efficiency and development of processing capacity.

Offshore exploration could become one part of this wider strategy, but commercial benefits depend on discoveries, technical feasibility and environmental compliance.

What Is a Composite Licence?

A composite licence is a mineral concession framework that combines stages of mineral exploration and potential subsequent production rights, subject to the relevant law and conditions.

The Ministry specifically announced the auction of the two offshore blocks for composite licences. This distinction is important: an auction launch is not the same as the completion of exploration, approval of mining operations or commencement of commercial production.

Legal Framework

The Ministry stated that the auction would be conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended.

These instruments provide the relevant statutory and procedural framework for the announced offshore mineral auction. Detailed eligibility and bidding conditions must be checked in the official tender documents.

Role of the Ministry of Mines

The Ministry of Mines is responsible for important aspects of mineral-sector policy and administration at the Union level.

In this auction, the Ministry launched the process, identified the relevant blocks and invited prospective bidders and capable explorers to participate.

Who Launched the Auction?

Keshav Chandra, Secretary, Ministry of Mines, virtually launched the auction on 1 October 2026.

Kadam Sandeep Vasant, Joint Secretary and Administering Authority, was present along with senior officials, representatives of scientific and technical institutions, public sector enterprises, industry stakeholders and prospective bidders.

What Is an Electronic Auction?

An electronic auction is a bidding process conducted through a digital platform. Participants submit bids according to the published eligibility, financial and procedural requirements.

The Ministry announced that the offshore mineral blocks would be auctioned through a transparent electronic process using the MSTC auction platform.

Digital bidding can support standardised participation and recordkeeping, but the actual rules are determined by the applicable legal framework and tender documents.

Important Auction Dates

The sale of tender documents began on 1 October 2026. The pre-bid conference was scheduled for 4 November 2026.

The last date for submitting queries was announced as 13 November 2026. The deadline for purchasing tender documents was 21 December 2026 at 5:00 PM IST, while the bid-submission deadline was 28 December 2026 at 5:00 PM IST.

These dates are the schedule announced on 1 October 2026. Participants should check the auction platform for any subsequent amendments or extensions.

What Is a Pre-Bid Conference?

A pre-bid conference is a meeting at which potential bidders can seek clarification about tender conditions, technical requirements and the bidding procedure.

It can help participants understand the opportunity before submitting formal bids. Clarifications or amendments issued by the authority may become important parts of the bidding process.

Why Is the Andaman Sea Strategically Important?

The Andaman Sea occupies an important location in the eastern Indian Ocean region. The surrounding waters are relevant to maritime trade, marine ecosystems and India's broader maritime interests.

The offshore mineral auction adds a resource-exploration dimension to the region's importance. However, exploration and extraction activities must account for ecological sensitivity and applicable legal requirements.

What Is Marine Mineral Exploration?

Marine mineral exploration involves investigating underwater geological formations to identify and evaluate mineral deposits.

Methods can include geological mapping, geophysical surveys, seabed sampling and laboratory analysis. Further studies may be required to estimate mineral quantity, quality and economic recoverability.

The auction announcement does not establish that all these steps have already been completed for commercial production.

Environmental Concerns

Offshore mineral exploration and potential extraction raise environmental questions because seabed habitats can support complex marine ecosystems.

Possible concerns associated with seabed disturbance include sediment movement, impacts on benthic organisms and changes to marine habitats. The extent of any impact depends on the technology, location, scale and operating practices.

The Ministry emphasised scientific, technological and environmentally responsible development of offshore mineral resources.

What Are Benthic Organisms?

Benthic organisms are organisms that live on, in or near the bottom of water bodies, including the seabed.

They form part of marine ecosystems and may be affected by activities that disturb bottom sediments or hard seabed surfaces.

Understanding these ecosystems is important when assessing the environmental implications of potential offshore mining.

Role of Science and Technology

Offshore mineral development may require specialised survey equipment, underwater vehicles, sensors, sampling technologies and processing methods.

Scientific investigation is necessary to understand the geological resources and environmental conditions before any commercial extraction decision.

The Ministry encouraged capable explorers and industry participants to bring appropriate technological expertise to the auction process.

Importance for Electric Mobility

Electric mobility relies on vehicles, charging infrastructure and supply chains involving multiple metals and materials.

Nickel, cobalt, copper and certain rare earth elements can be important in specific electric vehicle technologies. Their availability can influence industrial planning and supply-chain resilience.

The precise contribution of the auctioned blocks cannot be determined until exploration establishes the characteristics and commercial potential of the resources.

Importance for Renewable Energy

Renewable energy infrastructure uses materials for generators, motors, electrical systems, energy storage and power transmission.

Mineral supply chains therefore form part of the broader clean energy transition. At the same time, mineral development must be evaluated for its own environmental and social impacts.

Difference Between Exploration and Mining

Exploration investigates whether a deposit exists and evaluates its characteristics. Mining involves the extraction of minerals from a deposit.

An auction for exploration-related rights does not mean that extraction has begun. Commercial mining may require further investigation, permissions, infrastructure and investment.

This distinction is essential when interpreting government announcements about mineral blocks.

UPSC GS-I Relevance

The topic is relevant to the geography of the Andaman Sea, marine resources, seabed formations and the distribution of minerals.

Students should understand the location of Great Nicobar Island and the differences between polymetallic nodules and crusts.

UPSC GS-III Relevance

The development relates to mineral security, resource exploration, advanced manufacturing, electric mobility, technological capability and environmental sustainability.

A mains answer may discuss the economic importance of critical minerals while also examining ecological safeguards, technology requirements and the need for reliable resource assessments.

SSC, Railway and State PCS Relevance

Important facts include the two block names, their location, combined area, minerals mentioned, auction date, responsible ministry, auction platform and governing legislation.

Important Examination Facts

• Auction launch date: 1 October 2026.
• Ministry: Ministry of Mines.
• Official who launched the auction: Keshav Chandra, Secretary, Ministry of Mines.
• Joint Secretary and Administering Authority: Kadam Sandeep Vasant.
• Number of blocks: Two.
• First block: Sewell Rise-01.
• Second block: West Sewell Ridge-01.
• Location: Andaman Sea.
• Sewell Rise-01 location: Southern part of Sewell Rise.
• West Sewell Ridge-01 location: Offshore of Great Nicobar Island.
• Combined area: More than 1,632 square kilometres.
• Resources: Polymetallic nodules and crusts.
• Minerals mentioned: Cobalt, nickel, manganese, copper and rare earth elements.
• Licence type: Composite Licence.
• Auction platform: MSTC.
• Governing Act: Offshore Areas Mineral (Development and Regulation) Act, 2002.
• Relevant Rules: Offshore Areas Mineral (Auction) Rules, 2024, as amended.
• Tender document sale began: 1 October 2026.
• Pre-bid conference scheduled: 4 November 2026.
• Last date for queries: 13 November 2026.
• Tender purchase deadline: 21 December 2026, 5:00 PM IST.
• Bid-submission deadline: 28 December 2026, 5:00 PM IST.
• Official PIB Release ID: 2317680.

Official Source

Ministry of Mines, Press Information Bureau, 1 October 2026, Release ID 2317680.