New Delhi: The Ministry of Mines has enlarged its offshore polymetallic nodule and crust blocks after taking stakeholder feedback into account, Additional Secretary Dr Veena Kumari Dermal said on Tuesday. She was speaking at an outreach programme in New Delhi for prospective bidders for two seabed blocks in the Andaman Sea.
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According to the ministry’s statement, the ministry “has revised block configurations, including increasing the area of polymetallic nodule and crust blocks to provide greater operational flexibility for offshore exploration.”
The revision comes in the ministry’s second attempt to auction offshore mineral blocks. Its first tranche, launched on November 28, 2024, offered 13 blocks across the Arabian Sea and the Andaman Sea. Seven of them were polymetallic nodule and crust blocks in the West Sewell Ridge area off Great Nicobar Island. Companies asked for more time to study the blocks, and the bid deadline was pushed from February 27, 2025 to April 2 and then to May 1 that year. The government cancelled that auction in December 2025 because of a lack of interest.
The ministry issued the Notice Inviting Tender (NIT) for the new round on October 1. The tender covers operating rights for two blocks in the Andaman Sea, Sewell Rise-01 and West Sewell Ridge-01. Sewell Rise-01 covers 632 sq km. West Sewell Ridge-01 is the larger of the two at 1,000 sq km, which takes the total area on offer to 1,632 sq km.
Both blocks contain polymetallic nodules and crusts, according to the ministry, and are on offer for the grant of a composite licence. A composite licence covers exploration first and then production under a single concession. The ministry said the nodules and crusts contain minerals such as nickel, cobalt, copper and manganese. These, it said, “are important for various industrial applications and emerging technologies.”
The ministry said 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. Those rules were amended on September 24. The change lowered the number of technically qualified bidders needed for a first-attempt auction to go ahead to two, from three.
Bidders will carry the work of proving what the blocks hold. “Systematic exploration will be essential to establish the mineral potential of the blocks and assess their prospects for future development,” the ministry said.
Part of that cost can be recovered. At the programme, the National Mineral Exploration and Development Trust (NMEDT) presented its scheme for partial reimbursement of exploration expenses for composite licence holders of offshore mineral blocks.
Dermal also spoke about the environmental rules that will govern the blocks. These are the Terms of Reference (ToR) and Guidelines for Baseline Environmental Data Collection and Environmental Management Plans for offshore mineral exploration and exploitation in India’s Exclusive Economic Zone (EEZ). According to the statement, she noted that they “have been circulated to the concerned Central Ministries and Departments for comments and will be finalised shortly.”
Mines Secretary Keshav Chandra linked the auction to India’s mineral supply chains. According to the statement, he spoke about strengthening them to support economic growth, technological advancement, the energy transition and manufacturing competitiveness. He also highlighted the potential of the “Critical Mineral Processing Park coming up on the eastern coast of India to support offshore mineral processing.”
The Geological Survey of India (GSI) took participants through the geological characteristics and mineral potential of the blocks. SBI Capital Markets Limited (SBICAPS), the transaction advisor, then explained the policy framework, auction process, tender provisions and bidding requirements. MSTC Limited, the auction platform provider, demonstrated how to buy tender documents and submit bids on its e-auction portal.
An open-house discussion followed. Prospective bidders and other stakeholders sought clarifications and shared their views on the blocks, tender conditions, auction procedures and exploration-related support.
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Tender documents went on sale on October 1 and can be bought until December 21. The pre-bid conference is scheduled for November 4, and the last date for submitting queries is November 13. Bids must be submitted by December 28. The NIT and related auction documents are available on the MSTC e-auction portal.
