**New Delhi, October 1:** The Ministry of Mines is set to launch the auction of two offshore mineral blocks in the Andaman Sea on Thursday, opening another avenue for the exploration of India’s seabed mineral resources.
The two blocks will be offered under a **Composite Licence**, which covers exploration and subsequent development of mineral resources. The government expects the auction to encourage further exploration, attract investment and bring advanced technologies into offshore mineral development.
The blocks are located in the Andaman Sea region near the Great Nicobar area and contain polymetallic nodules and crusts. These seabed deposits can contain minerals such as **nickel, cobalt, manganese and copper**, along with rare earth elements that are used in a range of modern technologies.
The Ministry of Mines has linked the development of offshore mineral resources with India’s growing requirements for critical minerals used in electric mobility, renewable energy, electronics and other strategic industries. It has said that expanding domestic sources could help strengthen long-term mineral security and supply chains.
The auction is being conducted under the **Offshore Areas Mineral (Development and Regulation) Act, 2002** and the **Offshore Areas Mineral (Auction) Rules, 2024**, as amended. The government received the authority to auction offshore mineral blocks following amendments to the law in 2023.
The latest auction follows India’s earlier attempt in 2024, when 13 offshore blocks were offered. That auction was eventually annulled after the blocks failed to attract enough qualified bidders. In September 2026, the government also changed the auction rules, reducing the minimum number of technically qualified bidders required for a first-attempt auction from three to two.
The new auction marks another step in India’s efforts to explore mineral resources beyond its land-based reserves. The Ministry said the move could also encourage greater private-sector participation and technological development in offshore exploration.
