India auctions 1,632 sq km Andaman Sea mineral blocks in offshore push
Synopsis
India is opening its seabed to private bidders for the first time in the Andaman Sea, auctioning 1,632 sq km of mineral-rich offshore blocks containing nickel, cobalt, and copper — metals at the heart of the global clean energy race. The bid deadline of 28 December makes this one of the most consequential critical mineral tenders of the year.
Key Takeaways
The Ministry of Mines held a stakeholder outreach on 13 October 2026 for the auction of two offshore mineral blocks in the Andaman Sea .
Blocks Sewell Rise-01 ( 632 sq km ) and West Sewell Ridge-01 ( 1,000 sq km ) total 1,632 sq km and contain polymetallic nodules and crusts rich in nickel, cobalt, copper, and manganese .
Both blocks are offered under a Composite Licence ; the NIT was issued on 1 October 2026 .
The pre-bid conference is on 4 November ; the final bid submission deadline is 28 December 2026 .
NMEDT offers partial reimbursement of exploration expenses for Composite Licence holders to reduce entry risk for bidders.
A Critical Mineral Processing Park on India's eastern coast is planned to support downstream processing of offshore minerals.
The Ministry of Mines on Tuesday, 13 October 2026, held a stakeholder outreach session in New Delhi on the auction of two offshore mineral blocks in the Andaman Sea, as India moves to strengthen its critical mineral supply chains through domestic seabed exploration. The session brought together prospective bidders, industry representatives, and government agencies to walk through the bidding process, regulatory framework, and exploration support available.
The Two Blocks on Offer
The Ministry has issued a Notice Inviting Tender (NIT) dated 1 October 2026 for the grant of operating rights over two offshore blocks: Sewell Rise-01, covering 632 square kilometres, and West Sewell Ridge-01, covering 1,000 square kilometres — bringing the total auction area to 1,632 square kilometres. Both blocks are being offered under a Composite Licence and contain polymetallic nodules and crusts rich in nickel, cobalt, copper, and manganese — metals central to EV batteries, clean energy systems, and advanced manufacturing.
What the Government Said
Mines Secretary Keshav Chandra underscored the importance of building India's mineral supply chains to support economic growth, technological advancement, the energy transition, and manufacturing competitiveness. He also highlighted the potential of a Critical Mineral Processing Park coming up on India's eastern coast to support downstream processing of offshore minerals.
Additional Secretary Veena Kumari Dermal highlighted policy reforms aimed at the transparent and responsible development of India's offshore mineral resources. She noted that block configurations have been revised — including increasing the area of polymetallic nodule and crust blocks — to give prospective operators greater flexibility for exploration. She added that Terms of Reference and Guidelines for Baseline Environmental Data Collection and Environmental Management Plans have been circulated to concerned Central Ministries and Departments and will be finalised shortly.
Agencies and Support Mechanisms
The Geological Survey of India (GSI) presented geological characteristics and mineral potential of the two blocks. SBI Capital Markets Limited (SBICAPS), serving as Transaction Advisor, outlined the policy framework, auction process, and bidding requirements. MSTC, the e-auction platform provider, demonstrated the step-by-step process for purchasing tender documents and submitting bids online.
The National Mineral Exploration and Development Trust (NMEDT) presented its scheme for partial reimbursement of exploration expenses for Composite Licence holders — a financial support mechanism aimed at lowering entry risk for bidders.
Key Auction Dates
Sale of tender documents began on 1 October 2026. The pre-bid conference is scheduled for 4 November, with the last date for submission of queries set at 13 November. Tender documents may be purchased up to 21 December, and the deadline for bid submission is 28 December 2026.
This auction marks a notable step in India's broader effort to reduce import dependence on critical minerals, and comes amid growing global competition for seabed resources as clean energy demand accelerates. Whether the auction draws strong private sector participation will be a key test of the revised offshore mineral policy framework.
Point of View
But the real question is whether domestic and international capital will bite. Global critical mineral competition is intensifying — China dominates processing, and Western nations are scrambling for upstream security. India's revised block configurations and the NMEDT reimbursement scheme signal a more bidder-friendly posture, yet the absence of a named anchor investor or sovereign partner leaves the auction's commercial credibility untested. The environmental management guidelines being 'finalised shortly' is a phrase that has historically preceded long delays — if those norms aren't locked before December, last-minute regulatory uncertainty could chill participation.
NationPress
13 Oct 2026
Frequently Asked Questions
What are the two offshore mineral blocks being auctioned in the Andaman Sea?
The two blocks are Sewell Rise-01 (632 sq km) and West Sewell Ridge-01 (1,000 sq km), both located in the Andaman Sea and together covering 1,632 sq km. They contain polymetallic nodules and crusts rich in nickel, cobalt, copper, and manganese, and are being offered under a Composite Licence.
What is the deadline to submit bids for the Andaman Sea mineral blocks?
The last date for bid submission is 28 December 2026. Tender documents can be purchased up to 21 December, and a pre-bid conference is scheduled for 4 November 2026.
Why are polymetallic nodules and crusts important?
Polymetallic nodules and crusts contain critical minerals — nickel, cobalt, copper, and manganese — that are essential for EV batteries, renewable energy systems, and advanced manufacturing. Securing domestic sources reduces India's dependence on imports for these strategically vital materials.
What financial support is available for companies exploring the auctioned blocks?
The National Mineral Exploration and Development Trust (NMEDT) offers a scheme for partial reimbursement of exploration expenses for Composite Licence holders of offshore mineral blocks, aimed at lowering financial risk for prospective bidders.
What policy changes has the Ministry of Mines made to attract offshore mineral bidders?
The Ministry has revised block configurations — including increasing the area of polymetallic nodule and crust blocks — to provide greater operational flexibility. It is also finalising environmental management guidelines for offshore exploration in India's Exclusive Economic Zone and is developing a Critical Mineral Processing Park on the eastern coast to support downstream processing.
