Ministry of Mines to launch Auction of Mineral Blocks in Offshore Areas of India
Published: Nov 28, 2024
By TIOLCorplaws News Service
NEW DELHI, NOV 28, 2024: THE Ministry of Mines, Government of India, will be launching the first-ever tranche of auction of mineral blocks in the offshore areas of India on 28th November 2024. This landmark initiative marks India's entry into the exploration and development of undersea mineral resources within its offshore area. Offshore area of India includes the territorial waters, continental shelf, exclusive economic zone (EEZ) and other maritime zones of India.
India's Exclusive Economic Zone (EEZ) of over 2 million sq.km. holds significant mineral resources. Offshore minerals are vital to securing India's strategic and economic interests. With the rapid global shift towards technologies reliant on high-demand minerals, such as cobalt, nickel, rare earth elements (REE), and polymetallic nodules, India must develop diverse mineral sources to reduce dependence on imports and stabilize its supply chains.
In August 2023, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, mandating auction as mode of allocation of mineral blocks in the offshore areas. This amendment allows the government to streamline the grant of production leases and composite licenses for the exploration and extraction of these resources.
This first tranche includes 13 carefully selected mineral blocks spanning across the Arabian Sea and Andaman Sea, featuring a mix of construction sand, limemud, and polymetallic nodules. These minerals are critical for infrastructure development, high-tech manufacturing, and the green energy transition.
Union Minister of Coal and Mines, G. Kishan Reddy and Union Minister of State for Coal and Mines, Satish Chandra Dubey will officially launch this ground-breaking initiative.
Ministry of Mines, Government of India, thrives to mark a transformative chapter in India's mineral exploration journey, with the potential to unlock vast economic and strategic opportunities. By fostering private sector participation, leveraging advanced technologies, and streamlining regulatory frameworks, this initiative underscores the government's commitment to sustainable resource utilization and self-reliance. As India steps into this new frontier of undersea mineral exploration, it aims to not only bolster its industrial and green energy sectors but also secure its position as a global leader in critical minerals.
