Of the ten offshore mineral blocks set to be auctioned in the first tranche, seven are poly-metallic nodules and crusts located in the Andaman sea, and three are lime mud blocks off the Gujarat coast.
These blocks contain critical minerals like cobalt and nickel, which are essential for manufacturing low-carbon technologies that generate, store, and transmit clean energy. Situated in the country’s exclusive economic zone (EEZ), these blocks will be auctioned off with composite licences for resource determination, exploration, commercial production, and off-take.
The auction of the first tranche of offshore blocks under the offshore areas mineral (development and regulation) Act, 2002, will significantly expand capabilities and opportunities. Harnessing offshore mineral resources, particularly cobalt and nickel, will bolster clean energy and steel manufacturing.
The budget has increased funding for the Geological Survey of India (GSI), Indian Bureau of Mines (IBM), and National Mineral Exploration Trust (NMET) to enhance exploration and promote sustainable mining practices.
The ₹1,300 crore allocation for GSI will improve geoscience data collection and strategic planning, while the ₹135 crore for IBM will enhance regulatory efficiency and environmental protection. The ₹400 crore allocation for NMET will accelerate mineral exploration, potentially leading to new resource discoveries and encouraging start-ups and MSMEs.
There is a proposal to waive customs duty on twenty-five critical minerals and blister copper. Eliminating import duties on these minerals, along with reductions for two others, will reduce industry costs, attract investments in processing and refining, and support the growth of downstream industries. The move aims to reduce the country’s import reliance and mitigate supply risks due to global geopolitical turbulence.
As reported by thehindubusinessline.com, the zero import duty on blister copper will stabilize the supply chain for copper refiners, which is crucial for industries such as electronics and construction, enhancing the global competitiveness of Indian copper products.
