Government notifies 2 more offshore mineral blocks for licensing near Great Nicobar Island

The latest notification comes after the ministry failed to auction seven offshore mineral blocks containing the same minerals in the same area during the country’s first-ever auction of offshore mineral blocks.

In November 2024, the ministry had put 13 offshore mineral blocks up for auction for grant of composite licences, including seven blocks near Great Nicobar Island.

In addition to these seven blocks, three blocks off Gujarat’s coast containing lime mud and three off Kerala’s coast with construction sand up for auction were also put for auction during the time, marking a significant step in tapping the country’s offshore mineral reserves.

However, in December 2025, it annulled the auction of all 13 blocks due to a lack of bidders.

Of the seven blocks near Great Nicobar Island, four received no bids, while the remaining three had no technically qualified bidders, resulting in the annulment of the auction for all seven blocks.

Situated at the southern tip of the Andaman and Nicobar Island group in the Bay of Bengal, the Great Nicobar Island is also the site of the central government’s Rs 72,000 crore mega infrastructure project, which includes a transshipment port, an airport, a gas and solar power plant, and two greenfield coastal cities.

The project has faced criticism over its potential environmental impact, including potential harm to coral reefs, leatherback turtle nesting sites, Nicobar megapode nesting mounds, and the ancestral lands of the Great Nicobarese Scheduled Tribe community.

Offshore mining has also faced resistance elsewhere in the country, particularly in Kerala, over concerns about its potential impact on marine biodiversity and the livelihoods of fishing communities.

The government, however, has maintained that the Offshore Areas Mineral (Development and Regulation) Act, 2002, which governs offshore mining, contains adequate safeguards to protect ecological balance, biodiversity and the interests of fishermen.

“In accordance with the Offshore Areas Mineral Conservation and Development Rules, 2024, no production operations will be undertaken except in accordance with
an approved production plan. The concerns of fishermen and local communities will be specifically addressed during the preparation of the production plan and Environmental Management Plan (EMP), which every lessee is required to submit before commencing exploration or production activities,” the government had earlier told the parliament.