Government tightens rules for offshore minerals, but simplifies award process
In a bid to capitalise on its underwater resources, the Indian government has introduced new rules for auctioning offshore mineral assets, with the aim of ensuring a transparent and competitive process. While these rules include strict eligibility criteria, they also simplify the award process. The move comes in the wake of less than expected interest in auctions of critical minerals.
The Offshore Areas Mineral (Auction) Rules, 2024, released on August 16, propose an escalated forward online auction for bidding. In order to enhance the effectiveness of the auction, the government has allowed the auction to proceed even if there is only one technically qualified bidder left after the auction.