Cabinet Approves ₹84,084 Crore ‘Samudra Manthan’ Scheme to Boost Offshore Oil and Gas Exploration
India launches its biggest-ever offshore exploration mission to strengthen energy security and cut crude oil imports.
The scheme targets deepwater drilling, seismic surveys, shared infrastructure and domestic manufacturing by 2031.
Highlights
- Cabinet approves ₹84,084 crore Samudra Manthan National Offshore Exploration Scheme.
- Government to drill 60 deepwater exploration wells with up to 50% cost support.
- Nearly 99% of India’s Exclusive Economic Zone is now open for exploration.
- Scheme aims to raise domestic oil and gas production from 62 MMTOE to 80 MMTOE annually.
- Expected to reduce crude oil imports by nearly ₹1 lakh crore every year.
- Oil and Gas Manufacturing & Services Zones to boost indigenous production and jobs.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Samudra Manthan – National Offshore Exploration Scheme, a ₹84,084 crore Central Sector Scheme that will be implemented through FY2030-31. The Ministry of Petroleum and Natural Gas said the initiative is India’s largest offshore hydrocarbon exploration programme aimed at strengthening the country’s energy security and reducing dependence on imported crude oil.
India is currently the world’s third-largest crude oil consumer and spends nearly USD 144 billion annually on crude imports. With energy demand expected to rise further in the coming years, the government is focusing on expanding domestic oil and gas production through large-scale offshore exploration.
The scheme builds on a series of reforms introduced since 2014, including opening more than 99% of India’s previously restricted offshore areas for exploration, introducing a revenue-sharing contract model, modernising petroleum laws and simplifying regulatory procedures. These measures have created a more investment-friendly environment for exploration companies.
Under Samudra Manthan, the government will acquire and process advanced offshore seismic data, support the drilling of 60 deepwater exploration wells, develop shared offshore production infrastructure and establish dedicated Oil and Gas Manufacturing and Services Zones. The government will provide financial support of up to 50% of eligible drilling costs or ₹675 crore per well, whichever is lower, to reduce exploration risks and encourage private investment.
The scheme allocates ₹28,534 crore for offshore seismic surveys and data acquisition, ₹43,200 crore for exploration drilling, ₹10,000 crore for shared offshore infrastructure and ₹2,000 crore for manufacturing and services zones. Another ₹350 crore has been earmarked for digital monitoring, capacity building and awareness programmes.
According to the government, the mission aims to increase India’s annual domestic oil and gas production from around 62 MMTOE to 80 MMTOE while expanding the country’s hydrocarbon resource base from 1.6 billion TOE to 2.2 billion TOE. If exploration is successful, the additional production could help reduce crude oil imports by nearly ₹1 lakh crore every year. The initiative is also expected to create employment, promote indigenous manufacturing, accelerate technology adoption and strengthen India’s long-term energy resilience.
