India's Strategic Move: Offshore Mineral Auctions to Boost Domestic Supply

The Indian government plans to auction offshore mineral blocks, with the first phase expected in the next two to three months. This move aims to reduce import dependence by increasing domestic mineral supply. Recent lithium exploration in Jammu and Kashmir reveals significant reserves for energy transition.

The Indian government is preparing to launch the auction of offshore mineral blocks in a significant move to boost the domestic availability of critical resources. Scheduled to start within two to three months, the initial phase will see around 10 mines going up for bids, according to coal and mines minister G Kishan Reddy.

The amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002, have paved the way for this auction route, which is expected to enhance the country's mineral independence. Offshore mineral deposits – including gold, diamonds, and rare earth elements – are essential for various industries but are challenging to extract due to their deep-earth locations.

This initiative will help India reduce its reliance on imported minerals. In a related development, the discovery of approximately 5.9 million tonnes of lithium reserves in Jammu and Kashmir marks a significant step towards strengthening the country's foothold in the global energy transition market. These reserves are vital for manufacturing lithium-ion batteries, pivotal for electric vehicles and energy storage systems.

(With inputs from agencies.)