Question 1

Polymetallic nodules are exclusively found in deep international waters regulated solely by the International Seabed Authority (ISA).

Accepted Answer

India holds commercially viable reserves of polymetallic nodules and cobalt-rich crusts entirely within its own domestic Exclusive Economic Zone (EEZ), specifically along the West Sewell Ridge in the Andaman Sea.

Question 2

The recent legal amendments allow private companies to mine any offshore mineral, including atomic minerals, if they win the auction.

Accepted Answer

Private sector participation is strictly prohibited for offshore atomic minerals (such as monazite and thorium), which are exclusively reserved for government entities and state-owned corporations.

Question 3

Consider the following statements regarding the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023:
1. It introduces a composite licence that covers both preliminary exploration and subsequent production operations.
2. It permits private sector entities to participate in the auction of atomic mineral blocks located in offshore areas.
3. It establishes the Offshore Areas Mineral Trust to fund research on mitigating the adverse ecological effects of seabed mining.
How many of the above statements are correct?

Accepted Answer

(b) Only two — Statement 1 is correct; the 2023 amendment introduced a composite licence for a seamless transition from exploration to production. Statement 2 is incorrect; the Act and the subsequent 2025 rules explicitly restrict offshore atomic minerals to government entities and corporations, barring private participation. Statement 3 is correct; the Act establishes the Offshore Areas Mineral Trust funded by a surcharge on royalties for ecological mitigation and exploration.

Question 4

Match the offshore mineral resources auctioned in India's first tranche with their respective geological regions:

List I (Mineral Resource)
A. Polymetallic nodules and crusts
B. Lime mud
C. Construction sand
D. Monazite (Atomic mineral)

List II (Region/Status)
1. Coast of Gujarat (Arabian Sea)
2. West Sewell Ridge (Andaman Sea)
3. Coast of Kerala (Arabian Sea)
4. Reserved for Government (Not auctioned)

Select the correct answer code:

Accepted Answer

(a) A-2, B-1, C-3, D-4 — The November 2024 tranche included 7 blocks for polymetallic nodules off the Great Nicobar Island (West Sewell Ridge, Andaman Sea), 3 blocks of lime mud off the coast of Gujarat, and 3 blocks of construction sand off the coast of Kerala. Monazite is an atomic mineral, and under the amended rules, it is strictly reserved for government entities and was not auctioned to the private sector.

Question 5

Assertion (A): The standard size of an offshore mineral block was reduced from 5 minutes latitude by 5 minutes longitude to 1 minute latitude by 1 minute longitude under the 2023 amendment.
Reason (R): The amendment restricts the maximum offshore area a single entity can acquire to 45 minutes latitude by 45 minutes longitude to prevent corporate monopolies.
Select the correct answer:

Accepted Answer

(b) Both A and R are true but R is not the correct explanation of A. — Both statements are factually correct. The block size was indeed reduced to a 1x1 minute grid (Assertion), and a maximum acquisition cap of 45x45 minutes was instituted (Reason). However, the reduction in standard block size was intended to allow highly specific, targeted bidding on distinct geological features (like an undersea ridge), whereas the cap on maximum area is an independent provision designed to prevent monopolies. Thus, R does not explain A.

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