Centre invites bids for two offshore mineral blocks in Andaman Sea

The ministry issued the Notice Inviting Tender (NIT) to grant operating rights for the Sewell Rise-01 and West Sewell Ridge-01 blocks under a composite licence.

The Union ministry of mines on Tuesday invited prospective bidders to explore two offshore mineral blocks in the Andaman Sea, spanning a combined area of 1,632 square kilometres, as part of efforts to strengthen India’s access to critical minerals used in manufacturing, clean energy and emerging technologies.

At an outreach programme in New Delhi, the ministry officials briefed stakeholders on the geological potential of the blocks, the auction procedures, the regulatory requirements, and the financial assistance available for exploration.

The ministry issued the Notice Inviting Tender (NIT) on October 1 to grant operating rights for the Sewell Rise-01 and West Sewell Ridge-01 blocks under a composite licence.

Sewell Rise-01 covers 632 square kilometres, while West Sewell Ridge-01 spans 1,000 square kilometres. Both blocks contain polymetallic nodules and crusts that can contain nickel, cobalt, copper, and manganese.

Officials highlight importance

Ministry of mines Secretary Keshav Chandra underscored the importance of strengthening domestic mineral supply chains to support economic growth, technological advancement, the energy transition and manufacturing competitiveness.

He also highlighted the potential role of a Critical Mineral Processing Park being developed on India’s eastern coast in supporting offshore mineral processing.

Additional secretary Veena Kumari Dermal said the government had undertaken policy reforms to facilitate transparent and responsible development of offshore mineral resources.

“Taking stakeholder feedback into account, the ministry has revised block configurations, including increasing the area of polymetallic nodule and crust blocks to provide greater operational flexibility for exploration,” she said.

She added that the Terms of Reference and guidelines for collecting baseline environmental data and preparing environmental management plans for offshore mineral exploration and exploitation within India’s exclusive economic zone had been circulated to concerned central ministries and departments for comments.

“These will be finalised shortly,” she said.

The Geological Survey of India (GSI) outlined the geological characteristics and mineral potential of the two blocks. SBI Capital Markets Ltd, the transaction adviser, explained the policy framework, tender conditions and bidding requirements, while MSTC demonstrated the process of purchasing tender documents and submitting bids through its electronic auction portal.

The National Mineral Exploration and Development Trust (NMEDT) also explained a scheme providing partial reimbursement of exploration expenses to composite licence holders of offshore mineral blocks.

The auction is being conducted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, as amended in 2023, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended. The framework aims to ensure transparent allocation of offshore resources and promote systematic exploration.

Tender documents went on sale on October 1. The pre-bid conference is scheduled for November 4, while the last date for submitting queries is November 13. Prospective bidders can purchase tender documents until December 21, with bids due by December 28.

The government said systematic exploration would be essential to establish the blocks’ mineral potential and assess their prospects for future development.

Sanjeev K Jha is a senior journalist with nearly three decades of experience covering a wide range of beats, including bureaucracy, politics, and security issues such as ISI-linked activities in border regions. His reporting also extends to culture, with work on music and Bollywood. Currently part of the Political Bureau at Hindustan Times, he focuses on smaller allies within both the NDA and the INDIA bloc. His work offers insight into coalition politics and the evolving dynamics of India’s political landscape, backed by years of on-ground reporting and a deep understanding of governance and power structures.Read More