India has opened bidding for two offshore mineral blocks in the Andaman Sea, covering a combined area of 1,632 square kilometres, as the government seeks to strengthen domestic access to minerals used in electric vehicles, renewable energy, electronics and advanced manufacturing. The Ministry of Mines issued the tender on October 1, 2026, offering the blocks under a composite licence that allows exploration before potential development.
The blocks—Sewell Rise-01 and West Sewell Ridge-01—contain polymetallic nodules and crusts that may host cobalt, nickel, copper, manganese and other strategically important minerals. The auction is part of India’s broader effort to reduce supply-chain vulnerabilities and expand offshore resource exploration. However, the actual mineral potential and commercial viability of the blocks will need to be established through systematic exploration.
Key Takeaways
- India has invited bids for two offshore mineral blocks in the Andaman Sea.
- The blocks cover a combined area of 1,632 square kilometres.
- The resources include polymetallic nodules and crusts that may contain cobalt, nickel, copper, manganese and rare earth elements.
- The government is offering composite licences to encourage exploration and potential future development.
- The last date for submitting bids is December 28, 2026.
- The pre-bid conference is scheduled for November 4, 2026.
- The auction aims to strengthen mineral security, but commercial extraction will depend on geological findings, technology, costs and environmental safeguards.
Which Mineral Blocks Are Being Auctioned?
The Ministry of Mines has offered two offshore areas for exploration through a competitive electronic auction. Both blocks are located in the Andaman Sea region and are being offered under the composite-licence framework.
| Block | Location | Area |
|---|---|---|
| Sewell Rise-01 | Southern part of Sewell Rise | 632 sq km |
| West Sewell Ridge-01 | Off Great Nicobar Island | 1,000 sq km |
| Total | Andaman Sea | 1,632 sq km |
The blocks contain polymetallic nodules and crusts, geological formations that can contain several valuable metals. The government’s stated objective is to attract capable explorers and encourage systematic assessment of offshore mineral resources.
The auction follows an earlier attempt to allocate offshore mineral blocks that failed to attract sufficient qualified interest. The new round focuses on two selected blocks, with the government seeking to encourage participation through the revised regulatory and auction framework.
The key distinction is that the auction provides rights to explore and potentially develop the resources. It does not establish that commercially recoverable mineral deposits have already been proven.
What Are Polymetallic Nodules and Crusts?
Polymetallic nodules are mineral-rich formations found on the seabed. They can contain metals such as manganese, nickel, cobalt and copper, depending on their geological composition.
Polymetallic crusts are mineral accumulations that form on exposed rock surfaces on the ocean floor. Their composition can vary, and determining their economic value requires detailed scientific assessment.
These resources are attracting interest because several of their constituent metals are used in industrial and energy technologies.
- Nickel: Used in stainless steel and certain battery chemistries.
- Cobalt: Used in some rechargeable batteries and specialised industrial applications.
- Copper: Essential for electrical wiring, power networks, motors and renewable-energy infrastructure.
- Manganese: Used in steelmaking and selected battery technologies.
- Rare earth elements: Important in some permanent magnets, electronics and specialised industrial applications, depending on the elements present.
The presence of these minerals does not automatically make a seabed deposit commercially attractive. Their concentration, distribution, depth, recoverability and processing requirements must all be evaluated.
Why India Wants to Explore Offshore Mineral Resources
India depends on international supply chains for several critical minerals and processed materials. This can expose manufacturers to price volatility, export restrictions and supply disruptions.
Developing domestic mineral resources could help diversify supply, although offshore deposits would be only one part of a wider strategy that includes land-based mining, recycling, overseas acquisitions and mineral processing.
1. Supporting electric vehicles and battery supply chains
The transition to electric mobility has increased interest in minerals used in batteries, motors and electrical systems. Nickel and cobalt are important in some battery chemistries, while copper is widely used in wiring, charging infrastructure and electric motors.
Not every battery uses the same mineral mix, and battery technologies continue to evolve. Even so, reliable access to a diverse range of raw materials remains important for manufacturers.
If offshore exploration eventually identifies commercially recoverable deposits, they could provide another potential source of mineral supply. That outcome would depend on the results of exploration and the economics of extraction.
2. Strengthening renewable-energy infrastructure
Wind power, solar installations, electricity grids and energy-storage systems require substantial quantities of metals and industrial materials.
Copper is particularly important for electrical infrastructure, while other minerals support specific components and technologies. A more diversified supply base can help reduce exposure to concentrated sources of production and processing.
However, offshore exploration is a long-term resource-development activity. It should not be viewed as an immediate solution to current mineral shortages.
3. Supporting electronics and advanced manufacturing
Electronics, telecommunications equipment, industrial machinery and defence-related technologies depend on a wide range of metals and specialised materials.
Greater domestic access to raw materials could contribute to supply-chain resilience. But mining is only one part of the value chain: refining, chemical processing, component production and manufacturing capabilities are also necessary to convert raw resources into usable industrial inputs.
India would need to develop these complementary capabilities to capture the full economic benefits of any successful offshore mineral project.
What Is a Composite Licence?
The government is offering the two blocks under a composite licence. In broad terms, this framework combines exploration rights with a pathway toward potential production, subject to the applicable legal and regulatory conditions.
The arrangement is intended to provide companies with a route to assess a mineral deposit before committing to full-scale development.
Exploration typically involves collecting geological and geophysical information, sampling, estimating mineral concentrations and evaluating whether extraction may be technically and economically feasible.
If the findings are promising, the project would still require further technical work, investment decisions and the relevant approvals before commercial production could begin.
The framework can therefore help attract companies with the expertise and financial capacity to investigate offshore resources, while allowing decisions about development to be informed by exploration results.
Auction Schedule and Important Dates
The Ministry of Mines has published the tender and set out the main milestones for prospective bidders.
| Milestone | Date |
|---|---|
| Tender document sales began | October 1, 2026 |
| Pre-bid conference | November 4, 2026 |
| Deadline for submitting queries | November 13, 2026 |
| Last date to purchase tender documents | December 21, 2026 |
| Bid submission deadline | December 28, 2026, by 5 p.m. IST |
Prospective bidders can review the official tender documents, eligibility requirements and auction terms through the government’s designated electronic auction platform.
The process is being conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended.
Why the Auction Matters for India’s Mineral Security
India’s critical-mineral strategy is intended to reduce the risk of supply interruptions in sectors that rely on specialised metals and processed materials.
Offshore exploration could expand the country’s resource options, but it is not a substitute for a comprehensive mineral-security strategy. The economic value of any deposit will depend on the amount and quality of the resources, the ability to extract them safely and the cost of processing the resulting material.
There is also a distinction between securing mineral resources and securing refined products. A country may identify a deposit but still depend on overseas suppliers for the technology, equipment or processing capacity needed to turn the material into usable inputs.
For India, the broader opportunity involves building expertise across geological exploration, offshore engineering, mineral processing and supply-chain management.
Environmental and Technical Challenges
Exploring the seabed presents challenges that differ from conventional mining on land. Companies must operate in a marine environment where depth, pressure, sediment conditions, weather and equipment reliability can complicate exploration and extraction.
Commercial viability is another major question. Offshore mineral projects can require substantial upfront investment, specialised vessels, remotely operated equipment and detailed geological surveys. The economics depend on recoverable quantities, mineral grades, operating costs and the prices of the metals produced.
Environmental considerations are equally important. Seabed disturbance can affect marine habitats and ecosystems, while sediment plumes and other operational impacts require careful assessment. The extent of potential effects will depend on the location, geological setting and methods used.
Responsible development therefore requires scientific baseline studies, appropriate environmental assessments, monitoring and compliance with applicable safeguards. Exploration results should inform decisions about whether and how any future extraction can proceed.
What Happens After the Bidding Process?
The auction is the beginning of a resource-assessment process, not the end of it. Once the relevant rights are awarded, the successful licensees would need to undertake the exploration and technical work required under the licence and applicable regulations.
The main stages would include geological assessment, sampling, resource evaluation, feasibility studies and the preparation of development plans if the findings justify further investment.
Only after the mineral potential, technical feasibility, economics and regulatory requirements have been adequately assessed could a project move toward commercial production.
Consequently, the auction should be viewed as an attempt to establish whether these offshore areas can contribute to India’s future mineral supply. It is too early to estimate production volumes, project revenues or the eventual contribution to national mineral demand.
The Bigger Picture
India’s decision to auction the two Andaman Sea blocks reflects a wider effort to diversify sources of critical minerals and strengthen industrial supply chains. The metals potentially present in polymetallic nodules and crusts are relevant to batteries, power infrastructure, electronics and advanced manufacturing, making offshore exploration strategically interesting.
The commercial outcome, however, remains uncertain. The government must attract capable bidders, and exploration must establish whether the deposits can be developed economically and responsibly. Success will depend not simply on identifying minerals, but on converting geological potential into a viable and environmentally sound supply source.
Looking Ahead
The next milestones are the November 4 pre-bid conference, the November 13 deadline for bidder queries and the December 28 deadline for bid submissions. Participation in the auction and the subsequent exploration plans will provide early indications of industry interest. Geological findings and feasibility assessments will be more important than the size of the auction area alone in determining whether the blocks can support future production.
For India, the long-term opportunity is to build a more diversified mineral supply base while strengthening domestic processing and manufacturing capabilities. If exploration proves successful, offshore resources could complement existing sources of critical minerals. Until then, the blocks represent an opportunity for exploration rather than confirmed reserves or an immediate source of commercial mineral production.
Frequently Asked Questions
1. Which two mineral blocks is India auctioning in the Andaman Sea?
The blocks are Sewell Rise-01, covering 632 square kilometres, and West Sewell Ridge-01, covering 1,000 square kilometres.
2. Which minerals could be found in the blocks?
The blocks contain polymetallic nodules and crusts that may host nickel, cobalt, copper, manganese and rare earth elements. Their quantities and commercial viability require further assessment.
3. What is the deadline for submitting bids?
The last date for bid submission is December 28, 2026, by 5 p.m. Indian Standard Time.
4. What is a composite licence?
It provides a framework for exploration and a pathway toward potential development, subject to the applicable licence conditions and regulatory approvals.
5. Why are these minerals important?
They are used in different combinations across batteries, electrical infrastructure, renewable energy, electronics, steelmaking and other industrial applications.
6. Does the auction mean India has confirmed commercially viable seabed reserves?
No. The auction is intended to enable systematic exploration. Commercial viability will depend on geological findings, recoverable quantities, extraction costs, technology and environmental requirements.
7. When could mining begin?
No commercial production date has been established by the auction announcement. Exploration and feasibility work must first establish whether development is technically and economically viable.
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