NEW DELHI — The
Union Ministry of Mines will be launching the first-ever tranche of the auction
of mineral blocks in the offshore areas of the country on November 28, marking
a landmark initiative of India’s entry into the exploration and development of
undersea mineral resources, according to an official statement released on
Wednesday.
The offshore area of India includes the territorial waters,
continental shelf, exclusive economic zone (EEZ) and other maritime zones of
the country.
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,
the statement explained.
“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,”
the statement added.
In August 2023, the Parliament amended the Offshore Areas
Mineral (Development and Regulation) Act, 2002, mandating auction as a 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 the Andaman Sea, featuring a mix of
construction sand, lime mud, 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.
“The Ministry of Mines 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,” the statement added.
