Ministry of Mines Amends Offshore Mineral Auction Rules to Permit Holding Company Net Worth

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 06.06.2025

Ministry of Mines Amends Offshore Mineral Auction Rules to Permit Holding Company Net Worth

The Ministry of Mines, Government of India, has issued GSR 311(E) dated 14th May 2025, amending the Offshore Areas Mineral (Auction) Rules, 2024. This amendment clarifies a key eligibility criterion by allowing the net worth of the holding company to be considered in auctions, even if the holding company is incorporated outside India.

Summary of the Amendment

Notification Title	Offshore Areas Mineral (Auction) Amendment Rules, 2025
Published via	GSR 311(E) – Gazette of India (Extraordinary)
Issuing Ministry	Ministry of Mines
Date of Notification	14th May 2025
Amends	Schedule I of the Offshore Areas Mineral (Auction) Rules, 2024
Key Change	Substitution in Explanation Clause (1) of Schedule I
New Provision	Net worth of holding company (Indian or foreign) now admissible
Old Provision (replaced)	Considered only if applicant company is Indian or has specific links
Legal Basis	Section 35 of the Offshore Areas Mineral (Development and Regulation) Act, 2002 (17 of 2003)

Key Legal Insertion

The amendment specifically replaces the words:

“an applicant is a subsidiary… company may also be considered”

with:

“an applicant is a subsidiary company, the net worth of the holding company of such subsidiary company may also be considered and the holding company may be incorporated in India or outside India.”

Implications of the Amendment

Broader Investor Eligibility: Multinational companies with Indian subsidiaries can now participate more freely in offshore mineral auctions.
Boost to FDI in Mineral Sector: By recognizing foreign holding companies’ financial credentials, India sends a strong pro-investment signal.
Ease of Doing Business: Reduces barriers for participation in offshore mining auctions under the 2024 framework.
Regulatory Clarity: The amendment resolves ambiguity on financial qualification for subsidiary bidders.

Background: Offshore Areas Mineral (Auction) Rules, 2024

These rules were originally notified on 14th August 2024 to operationalize mineral auctions in India’s offshore Exclusive Economic Zone (EEZ). The framework covers auction procedures, eligibility, net worth criteria, and revenue-sharing mechanisms for seabed mineral extraction.

Conclusion

The Offshore Areas Mineral (Auction) Amendment Rules, 2025 underscore the Indian government’s intent to make its offshore mining regime more inclusive, competitive, and aligned with global investment practices. This small but critical change is expected to boost participation from global mining giants through their Indian subsidiaries.

Listen to this on our #YouTube Channel

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

Source: Ministry of Mines

Disclaimer

Handy Download:

Ministry of Mines NotificationDownload

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/