**India’s First Deep-Sea Mineral Auction Indefinitely Postponed: Here’s Why**
*By Mudit Dube | Sep 29, 2025, 05:20 PM*
India’s inaugural auction of deep-sea mineral blocks, rich in critical minerals, has been indefinitely postponed due to a lackluster response from potential bidders, government officials informed Moneycontrol.
### Background of the Auction
Launched in November last year, the auction featured 13 mineral blocks. These included three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks. These blocks are located from the Arabian Sea in the west to the Andaman Sea in the east and are abundant in valuable minerals such as cobalt, copper, manganese, and nickel — all crucial for electric vehicles (EVs), defense equipment, and renewable energy technologies.
### Schedule Changes and Extensions
The original bidding deadline was set for February 27 but was extended multiple times — first to April 2, then May 1, and later August 22. However, as confirmed by an official, the auction did not take place on August 22 as initially planned.
Officials cited the need for broader participation in the auction process as the main reason behind the indefinite postponement. They also mentioned that some companies submitted several inquiries due to the novelty of this auction format. Currently, no new date has been finalized for the auction.
### Environmental and Political Concerns
Despite the strategic importance of these mineral resources, there has been opposition from certain quarters. Political parties in Kerala and local fishing communities have raised concerns about the potential environmental risks associated with undersea mineral exploration.
### Technological Challenges in Deep-Sea Exploration
Experts acknowledge that technology remains the biggest hurdle for India’s deep-sea mineral mining ambitions. At the India Mining Summit held on September 18, Arvind Virmani, a member of NITI Aayog, highlighted the challenge: “Basically, the entire supply chain, including technology, has become concentrated. Now the whole world is scrambling to create new technologies.”
### Strategic Importance Amid Global Supply Chain Dynamics
China dominates global production of critical minerals, including rare earth elements vital for electronics, EV batteries, and defense. Its export restrictions have heightened concerns worldwide about supply security.
In response, India launched the National Critical Mineral Mission in January to enhance domestic exploration, improve processing capabilities, and promote recycling of these key minerals to reduce dependency on imports.
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India’s postponement of its first deep-sea mineral auction underscores the complexities involved—from technological and environmental challenges to geopolitical considerations—in securing critical resources essential for the country’s green and defense initiatives. The government continues to work towards creating a conducive environment for wider participation and successful execution of this strategic auction in the near future.
https://www.newsbytesapp.com/news/business/india-s-first-deep-sea-mineral-auction-postponed-amid-poor-response/story