The Ministry of Mines has launched an auction process for two offshore mineral blocks located in the Andaman Sea, each containing deposits of polymetallic nodules and crusts. The move is part of India’s effort to strengthen its mineral supply chains and secure access to critical minerals needed for energy transition and advanced manufacturing. An outreach programme held on 13 October 2026 in New Delhi briefed prospective bidders and stakeholders on the blocks, bidding rules, and government support for exploration activities.
Key facts
- Two offshore blocks offered: Sewell Rise-01 (632 square kilometres) and West Sewell Ridge-01 (1,000 square kilometres)
- Total area under auction: 1,632 square kilometres in the Andaman Sea
- Both blocks contain polymetallic nodules and crusts with nickel, cobalt, copper and manganese deposits
- Notice Inviting Tender issued: 1 October 2026
- Tender documents on sale from: 1 October 2026
- Pre-bid conference: 4 November 2026
- Deadline for queries: 13 November 2026
- Last date to purchase tender documents: 21 December 2026
- Bid submission deadline: 28 December 2026
- Auction conducted under: Offshore Areas Mineral (Development and Regulation) Act, 2002 (amended 2023) and Offshore Areas Mineral (Auction) Rules, 2024
What is being auctioned
The Ministry is offering exploration and operating rights for two distinct offshore blocks in India’s Exclusive Economic Zone in the Andaman Sea. The blocks will be granted through a Composite Licence, which permits both exploration and subsequent exploitation activities. The blocks contain polymetallic nodules and crusts, which are potato-sized formations on the seabed that contain minerals critical for global supply chains, particularly nickel, cobalt, copper and manganese. These minerals are essential for battery production, electronics manufacturing, and renewable energy technologies.
Policy framework and regulatory changes
The auction is conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, which was amended in 2023 to enable systematic offshore mineral exploration. The specific auction rules were notified through the Offshore Areas Mineral (Auction) Rules, 2024. The Ministry has undertaken policy reforms to make the auction process transparent and responsible. As part of these reforms, the block configurations have been revised to increase the area allocated to polymetallic nodule and crust exploration, giving operators greater operational flexibility during exploration activities.
Environmental safeguards and exploration support
The Ministry has circulated Terms of Reference and Guidelines for Baseline Environmental Data Collection and Environmental Management Plans to all concerned central ministries and departments. These guidelines will govern how offshore mineral exploration and exploitation activities must be conducted to protect the marine environment. The finalised versions are expected shortly. Additionally, the National Mineral Exploration and Development Trust (NMEDT) is offering a scheme that will partially reimburse exploration expenses incurred by successful bidders holding Composite Licences for offshore mineral blocks. This financial support is designed to reduce the upfront costs and risks faced by companies undertaking exploration in deep-sea environments.
The auction process
Tender documents are being sold through the MSTC e-auction portal (https://www.mstcecommerce.com/auctionhome/mlcln/index.jsp). Prospective bidders must purchase documents before 21 December 2026 and submit their bids by 28 December 2026. A pre-bid conference on 4 November 2026 will allow bidders to seek clarifications from the Ministry, the Geological Survey of India (which provided geological data), and SBI Capital Markets Limited (the transaction advisor). The last date for submitting written queries is 13 November 2026. The Geological Survey of India has provided technical information on the geological characteristics and mineral potential of each block to assist bidders in their assessments.
What this means for you
If you represent a company or consortium with offshore mining expertise and capital, you can now bid for exploration rights in India’s territorial waters. Success in this auction gives you access to mineral deposits that are becoming increasingly valuable as global demand for electric vehicle batteries and renewable energy technologies grows. The government’s financial support through the NMEDT scheme reduces the financial risk of early-stage exploration. However, you will need to comply with stringent environmental guidelines and baseline data collection requirements before beginning work. Citizens and environmental groups can expect the Ministry to enforce strict environmental protection during any subsequent exploitation, with baseline data used to measure and mitigate impacts on marine ecosystems.
What happens next
The pre-bid conference on 4 November 2026 will be followed by a query submission period ending 13 November 2026. Tender documents will be available for purchase until 21 December 2026. The bid submission window closes on 28 December 2026. After bids are received and evaluated, the Ministry will announce the successful bidders and grant Composite Licences for exploration. Environmental guidelines are expected to be finalised before exploration begins.