Operationalizing India's Offshore Mineral Sector: UPSC Current Affairs Story Arc

Overview

This arc documents India's strategic pivot toward its 'Blue Economy' through the operationalization of the Offshore Areas Mineral (Development and Regulation) Act, 2002. It begins with federal friction as Kerala opposes the Centre's policy, citing environmental and security fears. However, the Central Government bypassed these hurdles by notifying the 'Offshore Atomic Minerals Operating Right Rules, 2025.' These rules specifically target critical energy resources like Uranium and Thorium within India's 200-nautical-mile Exclusive Economic Zone (EEZ). By restricting these rights to Public Sector Undertakings (PSUs) and mandating real-time vessel tracking, the Centre has established a secure, state-led framework that culminated in India's expanded footprint in international waters under the ISA.

How This Story Evolved

Kerala opposes offshore policy (Item 9) → Centre issues general offshore atomic mineral rules (Item 19) → Specific operating right rules defined (Items 17, 16) → India secures deep-sea exploration contracts with ISA (Item 8).

1. 2025-03-05: Kerala Opposes Centre's Offshore Mining Policy
   More details

   UPSC Angle: Kerala opposes Centre's offshore mining policy.

   Key Facts:

   • Offshore Areas Mineral (Development and Regulation) Act, 2002
2. 2025-07-19: India Exploring Ocean Floor for Atomic Minerals
   More details

   UPSC Angle: India exploring ocean floor for atomic minerals to address energy demand.

   Key Facts:

   • Government issued offshore areas atomic minerals operating rules
   • Rules framed under offshore areas mineral development and regulation act
   • Exploring ocean floor for atomic minerals
3. 2025-08-03: Offshore Atomic Minerals Operating Right Rules, 2025
   More details

   UPSC Angle: Rules for operating rights for atomic minerals in India's EEZ.

   Key Facts:

   • The rules define procedures for granting operating rights for atomic minerals in seabed deposits within India's Exclusive Economic Zone (EEZ).
   • Only PSUs and government agencies are eligible to explore or mine atomic minerals offshore.
   • Electronic monitoring systems are mandatory for real-time tracking.
4. 2025-08-30: Offshore Atomic Minerals Operating Right Rules, 2025
   More details

   UPSC Angle: Offshore Areas Atomic Minerals Operating Right Rules, 2025 defined.

   Key Facts:

   • Rules define operating rights for atomic minerals in India's EEZ
   • Eligible entities: PSUs and government agencies
   • Mandatory: Real-time tracking of vessels, mineral volumes, and operational data
   • Minerals include: uranium, thorium, and rare earth elements
5. 2025-09-15: India's Deep-Sea Mineral Exploration
   More details

   UPSC Angle: India explores deep-sea minerals; ISA contracts for polymetallic sulphides.

   Key Facts:

   • India secured two contracts with ISA for exploring polymetallic sulphides (PMS) in the Indian Ocean.

Genesis

Trigger

The Kerala Assembly passed a resolution on March 5, 2025, opposing the Centre's offshore mining policy, citing it as a threat to the state's coastal ecology and livelihood.

Why Now

The move is driven by India's 'Net Zero' commitments and the need for indigenous 'Critical Minerals' for nuclear energy and green tech, necessitating a shift from land-based mining to the largely untapped offshore EEZ.

Historical Context

The foundation rests on the Offshore Areas Mineral (Development and Regulation) Act, 2002, which remained largely underutilized for two decades until the recent global rush for seabed minerals and the 2023 amendment to the MMDR Act.

Key Turning Points

1. [2025-08-03] Notification of the Offshore Atomic Minerals Operating Right Rules, 2025.

   It provided the specific legal machinery to grant exploration rights, moving beyond general policy statements.

   Before: Offshore mining was a conceptual goal with state-level opposition. After: A mandatory electronic monitoring framework and PSU-exclusivity were established.

Key Actors and Institutions

Key Institutions

• Department of Atomic Energy (DAE)
• International Seabed Authority (ISA)
• Ministry of Mines
• Geological Survey of India (GSI)

Key Concepts

Exclusive Economic Zone (EEZ)

A sea zone prescribed by UNCLOS over which a state has special rights regarding the exploration and use of marine resources, extending 200 nautical miles from the coast.

Current Fact: The 2025 Rules specifically define procedures for granting operating rights for atomic minerals within India's EEZ.

Atomic Minerals

Minerals like Uranium, Thorium, and Rare Earth Elements (REEs) used for nuclear power and advanced electronics.

Current Fact: The August 2025 rules restrict mining of these minerals exclusively to PSUs and government agencies.

Polymetallic Sulphides (PMS)

Seafloor deposits rich in copper, gold, silver, and zinc, often found near hydrothermal vents.

Current Fact: India secured two contracts with the ISA for exploring PMS in the Indian Ocean as of September 15, 2025.

What Happens Next

Current Status

As of September 15, 2025, India has transitioned from domestic rulemaking to international execution by securing two exploration contracts for Polymetallic Sulphides (PMS) with the International Seabed Authority (ISA).

Likely Next

Issuance of the first specific offshore mining leases to state-run entities like Indian Rare Earths Limited (IREL) or ONGC for seabed exploration.

Wildcards

Possible legal challenges in the Supreme Court by coastal states regarding 'Sea-Wealth' jurisdiction or environmental protests from the fishing community in Kerala.

Why UPSC Cares

Syllabus Topics

• Distribution of Key Natural Resources (Oceanic Resources)
• Federal Structure and Challenges (Centre-State relations over minerals)
• Science and Technology- Developments and their applications (Deep Sea Mining)

Essay Angles

• The Blue Economy: India's New Frontier for Energy Security
• Federalism vs. National Strategic Interests: The Case of Mineral Rights
• Ocean Floor: The Geopolitical Battlefield of the 21st Century

Prelims Likely: Yes

Mains Likely: Yes

Trend Signal: rising

Exam Intelligence

Previous Year Question Connections

• Tested whether the Global Ocean Commission or ISA grants seabed licenses and if India has received any. — Directly updates this; India now has new ISA contracts for Polymetallic Sulphides beyond the old polymetallic nodules licenses.
• Tested the 2023 MMDR amendment and India's joining of the Minerals Security Partnership. — This arc is the practical application of the Centre's exclusive powers mentioned in the 2023 amendment.

Prelims Angles

• Only PSUs and government agencies are eligible for offshore atomic mineral rights under 2025 Rules.
• Real-time tracking of vessels and operational data is mandatory for offshore mining.
• The Union (Centre) has exclusive jurisdiction over all minerals in the EEZ (Laxmikanth, Ch 75).
• Atomic minerals include not just Uranium but also Thorium and Rare Earth Elements.

Mains Preparation

Sample Question: Critically analyze the legal and federal challenges in operationalizing India's offshore mineral sector. How do the 'Offshore Atomic Minerals Operating Right Rules, 2025' address energy security while balancing state concerns?

Answer Structure: Intro: Define the Blue Economy and the 2002 Act framework → Body 1: Explain the 2025 Rules (PSU exclusivity, monitoring, EEZ focus) → Body 2: Discuss the Federal friction (e.g., Kerala resolution) vs Union's constitutional power over 'Sea-Wealth' → Body 3: International significance (ISA contracts, PMS exploration) → Conclusion: Path toward sustainable deep-sea mining and energy independence.

Essay Topic: The Deep Sea: Merging Economic Prosperity with Ecological Responsibility.

Textbook Connections

Key Takeaway

India has successfully established a state-monopolized, technologically monitored legal framework for offshore mining, effectively bypassing state-level opposition to secure its strategic interests in both the EEZ and international waters.

All Events in This Story (5 items)

1. 2025-03-05 [Polity & Governance] — Kerala Opposes Centre's Offshore Mining Policy
   The Kerala Assembly passed a resolution opposing the Centre's offshore mining policy due to environmental, economic, and security concerns. The mineral exploration and mining activities in India's offshore areas are regulated by the Offshore Areas Mineral (Development and Regulation) Act, 2002.
   More details

   UPSC Angle: Kerala opposes Centre's offshore mining policy.

   Key Facts:

   • Offshore Areas Mineral (Development and Regulation) Act, 2002
2. 2025-07-19 [Science & Technology] — India Exploring Ocean Floor for Atomic Minerals
   The government has issued offshore areas atomic minerals operating rules, now exploring the ocean floor for resources to address the growing energy demand and emphasize nuclear energy. Offshore regions are largely untapped, and this move requires regulation for mineral exploration.
   More details

   UPSC Angle: India exploring ocean floor for atomic minerals to address energy demand.

   Key Facts:

   • Government issued offshore areas atomic minerals operating rules
   • Rules framed under offshore areas mineral development and regulation act
   • Exploring ocean floor for atomic minerals
3. 2025-08-03 [Science & Technology] — Offshore Atomic Minerals Operating Right Rules, 2025
   The Offshore Areas Atomic Minerals Operating Right Rules, 2025, define procedures for granting operating rights for atomic minerals in seabed deposits within India's Exclusive Economic Zone (EEZ). Only public sector undertakings (PSUs) and government agencies are eligible to explore or mine atomic minerals offshore. Real-time tracking of vessels, mineral volumes, and operational data is mandatory.
   More details

   UPSC Angle: Rules for operating rights for atomic minerals in India's EEZ.

   Key Facts:

   • The rules define procedures for granting operating rights for atomic minerals in seabed deposits within India's Exclusive Economic Zone (EEZ).
   • Only PSUs and government agencies are eligible to explore or mine atomic minerals offshore.
   • Electronic monitoring systems are mandatory for real-time tracking.
4. 2025-08-30 [Polity & Governance] — Offshore Atomic Minerals Operating Right Rules, 2025
   The Offshore Areas Atomic Minerals Operating Right Rules, 2025, define procedures for granting operating rights for atomic minerals found in seabed deposits within India's Exclusive Economic Zone (EEZ). Only public sector undertakings (PSUs) and government agencies are eligible to explore or mine atomic minerals offshore.
   More details

   UPSC Angle: Offshore Areas Atomic Minerals Operating Right Rules, 2025 defined.

   Key Facts:

   • Rules define operating rights for atomic minerals in India's EEZ
   • Eligible entities: PSUs and government agencies
   • Mandatory: Real-time tracking of vessels, mineral volumes, and operational data
   • Minerals include: uranium, thorium, and rare earth elements
5. 2025-09-15 [Science & Technology] — India's Deep-Sea Mineral Exploration
   India has emerged as a key player in deep-sea mineral exploration, securing two contracts with the International Seabed Authority (ISA) for exploring polymetallic sulphides (PMS) in the Indian Ocean. These resources are vital for renewable energy technologies, green infrastructure, and advanced electronics.
   More details

   UPSC Angle: India explores deep-sea minerals; ISA contracts for polymetallic sulphides.

   Key Facts:

   • India secured two contracts with ISA for exploring polymetallic sulphides (PMS) in the Indian Ocean.