India to auction two offshore mineral blocks in Andaman Sea

India's Ministry of Mines is moving to auction two offshore mineral blocks in the Andaman Sea, signalling renewed focus on expanding the nation's mineral resource base through private investment. The blocks will be offered under composite licensing arrangements, a framework designed to streamline exploration and extraction operations while attracting qualified bidders.

The auction represents a key element of the government's strategy to bolster long-term mineral security and reduce dependence on imports for critical resources. Composite licences permit operators to conduct exploration activities with the option to transition to mining operations upon discovery of commercially viable deposits, reducing regulatory barriers and investment timelines.

Offshore mineral exploration in Indian waters remains relatively underdeveloped compared to terrestrial mining operations. The Andaman Sea blocks are expected to hold potential for polymetallic nodules and other marine mineral resources increasingly valued in global supply chains.

The ministry's push to attract investment through competitive bidding aligns with broader government initiatives to strengthen domestic mineral production capacity. Officials have indicated the auction process will follow transparent selection criteria while ensuring adherence to environmental and regulatory standards governing offshore operations.