**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

**India’s First Deep-Sea Mineral Auction Indefinitely Postponed: Here’s Why**

*By Mudit Dube | Sep 29, 2025, 05:20 PM*

India’s maiden auction of deep-sea mineral blocks, which are rich in critical minerals, has been indefinitely postponed. The decision follows a lukewarm response from potential bidders, according to government officials who spoke to Moneycontrol.

### Initial Auction and Response

The auction was launched in November, offering 13 mineral blocks, which included three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks. As this was India’s first attempt at such an auction, some companies submitted numerous queries, highlighting the novelty and complexity of deep-sea mineral exploration.

### Schedule Changes and Extensions

Originally, the bidding deadline was set for February 27. However, the deadline 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. A government official confirmed that the postponement aims to attract wider participation in the auction. Currently, a new date for the event has yet to be finalized.

### Strategic Importance of the Mineral Deposits

The auctioned mineral blocks cover a vast area stretching from the Arabian Sea in the west to the Andaman Sea in the east. These blocks are rich in critical minerals such as cobalt, copper, manganese, and nickel. Such resources are essential components for electric vehicles (EVs), defense equipment, and renewable energy technologies.

### Environmental and Local Concerns

Despite the strategic importance, political parties in Kerala and local fishing communities have voiced concerns regarding the environmental risks of undersea mineral exploration. These apprehensions have added complexity to the auction process.

### Technological Challenges

Experts have highlighted technology as the biggest hurdle in India’s deep-sea mineral exploration efforts. Arvind Virmani, a member of NITI Aayog, noted during the India Mining Summit on September 18 that the entire global supply chain, including technology, is highly concentrated, with countries worldwide racing to develop new technologies to access these resources.

### Addressing China’s Dominance

China remains the world’s largest producer of critical minerals, including rare earth elements vital for electronics, EV batteries, and defense systems. Beijing’s export restrictions on certain critical minerals have raised global concerns over supply security.

In response, India launched the National Critical Mineral Mission in January. This strategic initiative aims to boost exploration activities, enhance domestic processing capabilities, and promote recycling of critical minerals to reduce dependency on imports and strengthen India’s position in the global supply chain.

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India’s deep-sea mineral auction marks an important step towards securing essential resources for future technologies. However, challenges related to bidder participation, technology, and environmental concerns must be addressed to move forward successfully.
https://www.newsbytesapp.com/news/business/india-s-first-deep-sea-mineral-auction-postponed-amid-poor-response/story

**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