India is set to launch its auction of first offshore mineral block offering thirteen sites in the Arabian Sea and Andaman Sea.
This marks a significant step in the country’s exploration of undersea mineral resources, aiming to strengthen domestic industries and secure vital supply chains.
A Strategic Move for Supply Chain Security
The auction for the first offshore mineral blocks features rich in essential minerals such as construction sand, lime mud, and polymetallic nodules.
These minerals are crucial for a range of applications, from infrastructure projects to advanced manufacturing and the green energy transition.
The Ministry of Mines highlighted that this auction will help meet the growing demand for these materials. These materials are vital to India’s industrial and technological development.
Expanding India’s Territorial Reach
The auction will cover India’s territorial waters, continental shelf, and exclusive economic zone (EEZ). This area spans over two million square kilometers.
The EEZ is home to vast untapped resources, making this initiative an important step toward exploiting these riches.
With the global demand for minerals like cobalt, nickel, and rare earth elements increasing, India is working to reduce its import dependency. These minerals are pivotal for manufacturing renewable energy technologies and electric vehicles.
Government Support and Regulation
The government’s push to tap into offshore mineral resources gained momentum after last year’s amendment. The government made this change to the Offshore Areas Mineral (Development and Regulation) Act, 2002.
The amendment introduced auction-based licensing for exploration and production leases. This aims to streamline regulatory processes and attract private sector investment.
As reported by telegraphindia.com, India’s first offshore mineral block auction marks a transformative shift in its approach to undersea mineral exploration. This positions the country as a key player in the global mineral supply chain.