GeographyGS3+ GS1

Government Launches First Offshore Mineral Block Auction in Andaman Sea

PIB·2026-10-01· Read original

"Government Launches First Offshore Mineral Block Auction in Andaman Sea"

Prelims Facts

  • •The Offshore Areas Mineral (Development and Regulation) Act, 2002 regulates mineral exploration and mining in India's territorial waters, continental shelf, and EEZ
  • •A 2023 amendment to the OAMDR Act empowered the Union government to auction offshore mineral blocks via competitive bidding
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Key Terms

Composite Licence

a single licence combining exploration and mining rights for a mineral block

OAMDR Act, 2002

law governing mineral development in India's territorial waters, continental shelf and EEZ

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Study Note

BackgroundCore Concept

Background

India's offshore mineral regime is governed by the Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR Act), which applies to India's territorial waters, continental shelf, and Exclusive Economic Zone (EEZ). For decades, this law provided only for administratively granted reconnaissance and exploration permits, with no competitive allocation mechanism. A 2023 amendment to the OAMDR Act changed this by empowering the Union government to auction offshore blocks, and the Offshore Areas Mineral (Auction) Rules, 2024 now lay down the actual bidding process, granting a Composite Licence that bundles exploration and mining rights together, similar in spirit to the composite licence introduced for onshore critical minerals under the amended Mines and Minerals (Development and Regulation) Act, 1957.

Onshore and Offshore Mineral Frameworks
Onshore mineral framework
Offshore mineral framework
State role
States retain rule-making authority over minor minerals
No state role
Jurisdictional basis
Within state territory
Beyond 12 nautical miles, Maritime Zones Act 1976
Administering authority
Union notifies minerals, states administer concessions
Union administers exclusively

This offshore regime differs sharply from the onshore mineral framework in one important respect: federal division of power. Onshore, the Union notifies which minerals count as 'minor minerals', but states still retain rule-making authority over minor mineral concessions located within their territory. Offshore areas beyond 12 nautical miles fall entirely outside any state's jurisdiction under the Territorial Waters, Continental Shelf, EEZ and other Maritime Zones Act, 1976. There is no state role at all in offshore mineral governance; it is exclusively administered by the Union, making this a cleaner, fully centralised regulatory space compared to onshore mining.

The Topic Explained

The auction covers two offshore blocks in the Andaman Sea, to be granted as Composite Licences. The target minerals, cobalt, nickel, manganese, copper, and rare earth elements, are precisely the metals used in electric vehicle batteries, renewable energy systems, and advanced electronics. Global supply chains for these minerals are heavily concentrated in a handful of countries, so developing a domestic offshore source is framed as part of India's broader mineral and technology security strategy.

It is useful to separate this offshore EEZ auction from an entirely different regime: deep seabed mining in international waters beyond any country's jurisdiction, known as 'the Area' under the UN Convention on the Law of the Sea (UNCLOS). …

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Related PYQs

2025GS1 Prelims

Consider the following statements:

Statement I: In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories.

Statement II: In India, the Central Government has the power to notify minor minerals under the relevant law.

Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
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2021GS1 Prelims

Consider the following statements:

1.The Global Ocean Commission grants licences for seabed exploration and mining in international waters.

2.India has received licences for seabed mineral exploration in international waters.

3.'Rare earth minerals' are present on the seafloor in international waters.

Which of the statements given above are correct?

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Practice MCQs

Geographymedium

With reference to India's offshore mineral regime, consider the following statements:

1.The Offshore Areas Mineral (Development and Regulation) Act, 2002 applies to India's territorial waters, continental shelf, and Exclusive Economic Zone.

2.A 2023 amendment to this Act empowered the Union government to auction offshore mineral blocks.

3.State governments have concurrent rule-making power over offshore mineral concessions beyond 12 nautical miles.

Which of the statements given above is/are correct?

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Geographyhard

Match the following mineral governance mechanisms with the authority responsible for licensing:

List I (Mechanism)

A.Offshore mineral blocks within India's EEZ

B.Onshore minor mineral concessions

C.Seabed polymetallic nodule exploration in international waters

List II (Licensing Authority)

1.State Governments (under Central notification)

2.Union Government (Ministry of Mines)

3.International Seabed Authority

Select the correct answer using the code given below:

AA-2, B-1, C-3
BA-1, B-2, C-3
CA-3, B-1, C-2
DA-2, B-3, C-1
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Geographymedium

With reference to India's maritime mineral jurisdiction, consider the following statements:

1.State governments exercise jurisdiction over mineral resources up to the full extent of India's Exclusive Economic Zone.

2.India's territorial waters extend up to 12 nautical miles from the baseline.

3.Deep seabed mining beyond national jurisdiction is regulated by the International Seabed Authority under UNCLOS.

Which of the statements given above is/are correct?

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Geographyeasy

Which of the following statements about the Composite Licence introduced under the Offshore Areas Mineral (Auction) Rules, 2024 is correct?

AIt grants only reconnaissance rights without any mining rights
BIt bundles exploration and mining rights into a single licence
CIt is granted exclusively to foreign companies
DIt applies only to minerals found within 12 nautical miles of the coast
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