**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. According to government officials who spoke to Moneycontrol, the decision comes following a lukewarm response from potential bidders.
### Initial Launch and Auction Blocks
The auction was launched in November, offering 13 mineral blocks for bidding. These included three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks. These blocks are spread across a vast region from the Arabian Sea in the west to the Andaman Sea in the east.
### Multiple Deadline Extensions and Postponement
Initially, the bidding deadline was set for February 27, but it was extended multiple times—to April 2, May 1, and then August 22. Despite these extensions, the auction did not take place on August 22 as planned. An official confirmed to Moneycontrol that the government decided to postpone the auction to encourage broader participation. A new date for the event is yet to be announced.
### Importance of Mineral Deposits
The blocks on offer are rich in critical minerals such as cobalt, copper, manganese, and nickel. These minerals are essential for manufacturing electric vehicles (EVs), defense equipment, and renewable energy technologies—industries that are crucial for India’s strategic growth and technological advancement.
### Environmental Concerns and Local Opposition
Despite the strategic significance, the auction has met with resistance from political parties in Kerala and local fishing communities, who have raised concerns about the environmental risks linked to undersea mineral exploration.
### Technological Challenges
Experts highlight that technology poses a significant challenge for India’s deep-sea mineral exploration. Arvind Virmani, a member of NITI Aayog, noted at the India Mining Summit on September 18, “Basically, the entire supply chain, including technology, has become concentrated. Now the whole world is scrambling to create new technologies.”
### Strategic Context: Reducing Dependence on China
China dominates the production of critical minerals, including rare earth elements utilized in electronics, EV batteries, and defense sectors. This dominance has global implications, especially following Beijing’s export restrictions on certain essential minerals.
In response, India launched the National Critical Mineral Mission earlier this year in January. The initiative aims to boost domestic exploration, enhance processing capabilities, and promote recycling of critical minerals to reduce reliance on imports and improve supply chain resilience.
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India’s postponement of the deep-sea mineral auction underscores the complexities involved—from technological hurdles and environmental concerns to the need for wider stakeholder participation. The government’s strategic focus remains on harnessing critical mineral resources essential for the country’s future, while balancing ecological and socio-economic factors.
https://www.newsbytesapp.com/news/business/india-s-first-deep-sea-mineral-auction-postponed-amid-poor-response/story