India to Auction Two Offshore Mineral Blocks in Andaman Sea

India will open the auction of two offshore mineral blocks in the Andaman Sea on October 1, 2026, expanding its effort to tap domestic mineral resources beyond the mainland and strengthen long-term access to materials needed for advanced technologies and strategic industries.

The blocks will be offered for Composite Licence, allowing exploration to proceed before any subsequent production stage. The move follows the creation of a competitive auction framework for offshore minerals under amendments to the Offshore Areas Mineral (Development and Regulation) Act and the Offshore Areas Mineral (Auction) Rules, 2024.

Two Blocks to Be Offered in the Andaman Sea

The Ministry of Mines has identified two offshore mineral blocks in the Andaman Sea region for the latest auction.

Both blocks will be offered through the Composite Licence route, which combines exploration rights with a pathway towards production subject to statutory requirements and successful resource assessment.

The government expects the auction to encourage more systematic offshore exploration, attract private investment and promote the use of advanced technologies for identifying and developing mineral resources beneath India’s maritime areas.

Offshore Minerals Enter India’s Resource-Security Strategy

India’s push into offshore exploration is linked to growing demand for minerals used in batteries, electric vehicles, renewable energy systems, electronics and defence technologies.

Materials such as cobalt, nickel, manganese, copper and rare earth elements have become increasingly important to industrial supply chains. Expanding domestic exploration can therefore complement India’s wider efforts to reduce dependence on concentrated overseas sources.

Legal Framework Enables Competitive Offshore Auctions

The auction is being conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002 and the Offshore Areas Mineral (Auction) Rules, 2024.

Amendments to the OAMDR Act in 2023 gave the Central Government a clearer framework for auctioning offshore mineral blocks through transparent and competitive allocation.

The Offshore Areas Mineral (Auction) Rules, notified in 2024, established the bidding mechanism for granting offshore mineral rights and created the regulatory structure required for wider private-sector participation.

India had earlier launched its first tranche of offshore mineral auctions in November 2024, covering 13 blocks, including polymetallic nodules and crusts near Great Nicobar Island, construction sand off Kerala and lime mud off Gujarat.

Private Investment and Advanced Exploration Technologies

Offshore mineral development requires technologies that differ significantly from conventional land-based mining.

Exploration can involve seabed mapping, geophysical surveys, remotely operated systems, specialised sampling equipment and detailed geological analysis before the commercial potential of a resource can be established.

By auctioning the Andaman Sea blocks, the Ministry of Mines is seeking to bring greater private-sector participation and technological capability into this emerging segment of India’s mineral industry.

The auction model can also create opportunities for Indian engineering, marine technology, geoscience and offshore-services companies as exploration activity expands.

Part of a Wider Critical Minerals Push

The Andaman Sea auction complements India’s broader programme of critical and strategic mineral auctions on land, along with recycling initiatives, overseas mineral partnerships and domestic exploration.

In July 2026, the Ministry of Mines launched the eighth tranche of critical and strategic mineral auctions, covering minerals including rare earth elements, vanadium, gallium, tungsten, lithium, cesium and rubidium. By then, 56 of 88 critical and strategic mineral blocks offered across earlier rounds had been successfully auctioned.

Offshore exploration widens that resource base by bringing India’s maritime geology into the country’s long-term mineral development framework.

Andaman Sea Opens a New Frontier for Mineral Exploration

The latest auction moves India further into systematic exploration of its offshore mineral resources.

Commercial development will depend on geological findings, environmental clearances, technical feasibility and subsequent statutory processes, but the auction creates a formal route for assessing the resource potential of the selected Andaman Sea blocks.

For India, offshore exploration adds a new layer to a broader mineral strategy that already includes terrestrial mining, recycling and international partnerships. The Andaman Sea auction therefore marks an important step towards building a more diversified resource base for future industrial and technological growth.

---

References

Press Information Bureau, Ministry of Mines — “Ministry of Mines to Launch Auction of Offshore Mineral Blocks in Andaman Sea,” September 30, 2026.

https://pib.gov.in

Offshore Areas Mineral (Development and Regulation) Act, 2002, as amended in 2023.

Offshore Areas Mineral (Auction) Rules, 2024.

Press Information Bureau, Ministry of Mines — “Licenses for Offshore Mining,” April 2, 2025.

https://pib.gov.in

Press Information Bureau, Ministry of Mines — “Ministry of Mines to Launch Eighth Tranche of Auction of Critical and Strategic Mineral Blocks,” July 14, 2026.

https://pib.gov.in

---