India does not plan to go ahead with auctioning deep-sea mining rights due to a lack of technological preparedness and expectations of a weak response from potential bidders, two sources familiar with the matter told Reuters.
In November of 2024, India had announced the maiden auction of 13 offshore mineral blocks that included three lime mud blocks, three construction sands blocks and seven polymetallic nodules blocks in the first tranche.
The blocks contained critical minerals, including cobalt, copper, manganese, and nickel, which are vital for electric vehicles and solar panels.
However, in December last year, after repeated extensions of timelines to invite bids, the government annulled the auction due to lack of interest.
The first tranche of offshore minerals was worth more than INR1.5 trillion ($16 billion), Reuters had reported.
"The impression we have is that it is not economically feasible for companies," one of the sources said, declining to be identified due to the confidential nature of deliberations.
In addition, the process requires specialised mining, and Indian companies lack the technology, the sources said. Huge investments are also needed for such mining activities and domestic miners are not prepared to commit, the sources added.
Indian authorities may explore the option of auctioning different blocks to test interest among miners, one of the sources said, adding it would take some time to come up with fresh assessments of these blocks.
The federal mines ministry did not respond to a Reuters email seeking comment.
New Delhi has had only limited success in its onshore critical minerals auction as well, with only about 60 per cent of the 76 blocks successfully awarded to bidders.
(Reporting by Neha Arora; Editing by Kevin Buckland)