Parliamentary panel flags policy, capacity gaps in offshore mining push

Govt annulled first auction of 13 offshore mineral blocks after muted investor response last December

A parliamentary panel has recommended a dedicated offshore mineral exploration policy and funding framework, flagging gaps in India’s preparedness to tap seabed resources. The recommendations came after the government’s first attempt to auction offshore blocks failed to attract investor interest.

 

In its 23rd report on the National Mineral Exploration and Development Trust (NMEDT), the Standing Committee on Coal, Mines and Steel said offshore exploration presents a “significant opportunity” to harness largely untapped seabed minerals and strengthen long-term resource security, particularly in the context of securing critical minerals.

 

It recommended that the Ministry of Mines formulate a clear policy framework  backed by funding mechanisms and inter-ministerial coordination involving agencies such as the Ministry of Earth Sciences and the Geological Survey of India.

 

The Centre had annulled auctions for 13 offshore mineral blocks in December 2025, 10 of which received no bids, while three failed to attract the minimum required technically qualified bidders, highlighting weak investor response to the segment.

 

Beyond the absence of a dedicated offshore framework, the panel’s findings point to deeper institutional and structural constraints. It noted that NMEDT’s mandate has expanded significantly to include offshore exploration, overseas mineral development and coordination with the National Critical Mineral Mission, but flagged the need for a comprehensive manpower assessment and the creation of a specialised cadre with expertise in geology, geophysics, project finance and international mineral law.

 

The committee also highlighted gaps in the exploration ecosystem at the state level, noting that fund allocation under the National Mineral Exploration Trust (NMET) remains proposal-driven, with no clear framework for equitable distribution across states. It recommended the development of state-specific multi-year exploration roadmaps to build a stronger pipeline of projects, particularly in regions with low participation.

 

On governance, the panel pointed to the need for greater transparency in fund flows, suggesting a real-time digital dashboard to track royalty collections, contributions and transfers across states, given the current multi-layered mechanism involving state accounts and the Consolidated Fund of India.

 

The report also underscored the strategic importance of critical and energy transition minerals, proposing the creation of a Critical Mineral Security Index to map India’s import dependence against its domestic exploration pipeline and guide project prioritisation.