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Two Offshore Mineral Blocks in Andaman Sea Put Up for Auction

The Ministry of Mines held an outreach programme in New Delhi on 13 October 2026 on the auction of two Andaman Sea offshore blocks covering 1,632 sq km.

By Published · 2 min read
Two Offshore Mineral Blocks in Andaman Sea Put Up for Auction — GK24 title card

Why in News

On 13 October 2026 the Ministry of Mines held an outreach programme in New Delhi for the auction of two offshore mineral blocks, Sewell Rise-01 and West Sewell Ridge-01, in the Andaman Sea, covering 1,632 square kilometres in all.

The Ministry of Mines held an outreach programme in New Delhi on the auction of offshore mineral blocks, bringing together likely bidders, advisers and government agencies. The ministry had already issued a notice inviting tender on 1 October 2026 for the grant of operating rights over two blocks lying in the Andaman Sea, and the programme explained the blocks, the rules, the bidding steps and the help available for exploration.

The two blocks

The blocks on offer are Sewell Rise-01 and West Sewell Ridge-01. Both hold polymetallic nodules and crusts, and both are being offered for a composite licence, which allows a holder to explore and then move to production. Sewell Rise-01 spreads over 632 square kilometres and West Sewell Ridge-01 over 1,000 square kilometres, so the area put up for auction adds up to 1,632 square kilometres. Polymetallic nodules and crusts carry nickel, cobalt, copper and manganese, metals that industry and newer technologies depend on.

What officials said

Secretary, Ministry of Mines, Keshav Chandra spoke of the need to strengthen the country's mineral supply chains for growth, for the energy transition and for competitive manufacturing, and pointed to the Critical Mineral Processing Park coming up on the eastern coast, which can process minerals won from the sea bed. Additional Secretary Veena Kumari Dermal explained the reforms behind the auction. Acting on the views of possible bidders, the ministry has redrawn block boundaries and enlarged the nodule and crust blocks to give explorers more room to work. She added that the terms of reference and guidelines for collecting baseline environmental data and preparing environmental management plans in India's exclusive economic zone have gone to other central ministries for comments and will be settled soon.

Who is running the auction

  • The Geological Survey of India set out the geology and mineral promise of the blocks.
  • SBI Capital Markets Limited, the transaction adviser, took bidders through the tender conditions and the auction process.
  • MSTC, which runs the auction platform, showed how to buy tender papers and file bids online.
  • The National Mineral Exploration and Development Trust explained its scheme that repays part of the exploration cost to composite licence holders.

Law and dates

The auction is being held under the Offshore Areas Mineral (Development and Regulation) Act, 2002, as amended in 2023, along with the Offshore Areas Mineral (Auction) Rules, 2024. Tender papers went on sale on 1 October 2026. The pre-bid conference falls on 4 November 2026 and queries close on 13 November 2026. Tender documents can be bought until 21 December 2026, and bids must be submitted by 28 December 2026.

Important Facts

EventOutreach programme on auction of offshore mineral blocks, New Delhi
MinistryMinistry of Mines
Blocks offeredSewell Rise-01 and West Sewell Ridge-01, Andaman Sea
Area632 sq km and 1,000 sq km, total 1,632 sq km
MineralsPolymetallic nodules and crusts containing nickel, cobalt, copper and manganese
Licence typeComposite Licence
LawOffshore Areas Mineral (Development and Regulation) Act, 2002, amended in 2023; Auction Rules, 2024
Transaction adviserSBI Capital Markets Limited (SBICAPS)
Auction platformMSTC
Bid closing date28 December 2026

Exam Point of View

Remember the names of the two blocks, the sea they lie in (Andaman Sea), their areas (632 and 1,000 sq km, total 1,632 sq km), the minerals involved (polymetallic nodules and crusts with nickel, cobalt, copper and manganese), the governing Act of 2002 as amended in 2023, the Auction Rules of 2024, the transaction adviser SBICAPS, the platform MSTC and the bid closing date of 28 December 2026.

Practice Questions

Q1.EconomyEasy

The two offshore mineral blocks offered for auction by the Ministry of Mines lie in which sea?

  1. A.Arabian Sea
  2. B.Andaman Sea
  3. C.Laccadive Sea
  4. D.Bay of Bengal off Odisha
Show answer
Correct answer: B. Andaman Sea

Explanation

The correct answer is the Andaman Sea. The two blocks put up for auction, Sewell Rise-01 and West Sewell Ridge-01, both lie in the Andaman Sea, and both hold polymetallic nodules and crusts. Sewell Rise-01 covers an area of 632 square kilometres and West Sewell Ridge-01 covers 1,000 square kilometres, so the auction covers 1,632 square kilometres in all. Each block is being offered for a composite licence, which lets the holder explore first and then move towards production. The other options are wrong because no block in the Arabian Sea, the Laccadive Sea or the waters off Odisha was part of this notice inviting tender, which the ministry issued on 1 October 2026. Candidates should tie the block names to the Andaman Sea and recall that the metals involved are nickel, cobalt, copper and manganese.

Q2.EconomyMedium

What is the total area of the two offshore mineral blocks offered for auction?

  1. A.632 square kilometres
  2. B.1,000 square kilometres
  3. C.1,632 square kilometres
  4. D.2,632 square kilometres
Show answer
Correct answer: C. 1,632 square kilometres

Explanation

The correct answer is 1,632 square kilometres. Sewell Rise-01 accounts for 632 square kilometres of that area and West Sewell Ridge-01 for the remaining 1,000 square kilometres, so the two blocks together make up the figure asked for. Option A gives only the smaller block and option B only the larger one, which is why both are wrong, while option D is simply not the sum of the two. The ministry had earlier redrawn block boundaries after hearing from likely bidders, enlarging the polymetallic nodule and crust blocks so that explorers have more operational room at sea. Both blocks are offered for a composite licence under the Offshore Areas Mineral (Development and Regulation) Act, 2002, as amended in 2023. Remember both individual areas, since a question may ask for either block alone.

Q3.EconomyMedium

Which institution is the transaction adviser for the offshore mineral block auction?

  1. A.Geological Survey of India
  2. B.SBI Capital Markets Limited
  3. C.MSTC
  4. D.National Mineral Exploration and Development Trust
Show answer
Correct answer: B. SBI Capital Markets Limited

Explanation

The correct answer is SBI Capital Markets Limited, which acts as the transaction adviser and explained the policy framework, the auction process and the bidding requirements at the outreach programme. The other three options all took part in the same programme but in different roles, which is what makes them attractive distractors. The Geological Survey of India presented the geological character and mineral promise of the two blocks. MSTC is the auction platform provider and demonstrated how tender documents are bought and bids filed through its portal. The National Mineral Exploration and Development Trust explained its scheme for repaying part of the exploration cost to composite licence holders of offshore blocks. Candidates should memorise this division of work, because questions on auctions often test which agency performs which function rather than the auction itself.

Q4.EconomyHard

Which Act governs the auction of India's offshore mineral blocks?

  1. A.The Mines and Minerals (Development and Regulation) Act, 1957
  2. B.The Offshore Areas Mineral (Development and Regulation) Act, 2002
  3. C.The Territorial Waters Act, 1976
  4. D.The Coastal Regulation Zone Act, 2011
Show answer
Correct answer: B. The Offshore Areas Mineral (Development and Regulation) Act, 2002

Explanation

The correct answer is the Offshore Areas Mineral (Development and Regulation) Act, 2002, as amended in 2023, read along with the Offshore Areas Mineral (Auction) Rules, 2024. This framework is meant to keep the allotment of sea bed mineral resources transparent and to push systematic exploration of the country's offshore potential. The other options are incorrect for this auction: the law of 1957 governs mineral concessions on land, while the remaining two choices do not provide for auctioning offshore mineral blocks at all. Along with the law, remember the timetable of this auction. Tender papers went on sale on 1 October 2026, the pre-bid conference is set for 4 November 2026, queries close on 13 November 2026, documents can be bought until 21 December 2026 and bids must reach the platform by 28 December 2026.

Frequently Asked Questions

Which two offshore mineral blocks has India put up for auction?

Sewell Rise-01 and West Sewell Ridge-01, both in the Andaman Sea. Sewell Rise-01 covers 632 square kilometres and West Sewell Ridge-01 covers 1,000 square kilometres, and both are offered for a composite licence.

Which minerals are found in the blocks?

Polymetallic nodules and crusts, which contain nickel, cobalt, copper and manganese. These metals matter for industry, for the energy transition and for newer technologies, and a Critical Mineral Processing Park is coming up on the eastern coast.

Under which law is the offshore auction being conducted?

Under the Offshore Areas Mineral (Development and Regulation) Act, 2002, as amended in 2023, read with the Offshore Areas Mineral (Auction) Rules, 2024. Bids must be filed by 28 December 2026 on the MSTC platform.

Sources

Useful for:SSCSSC CGLIBPS