Cabinet Approves Samudra Manthan National Offshore Exploration Scheme
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Offshore Exploration Scheme called 'Samudra Manthan' with a total outlay of ₹84,084 crore for implementation through FY 2030–31. This Central Sector Scheme of the Ministry of Petroleum & Natural Gas represents India's most ambitious offshore exploration mission to date, aimed at strengthening the country's energy security and supporting the Atmanirbhar Bharat initiative.
India is the world's third-largest crude oil consumer with an annual import bill of nearly USD 144 billion (approximately ₹13 lakh crore). The scheme addresses the strategic importance of secure energy access for India's growing economy, particularly given that existing oil and gas fields experience natural production decline of 6–7% annually, making continuous exploration essential to sustain domestic production.
Scheme Components and Financial Allocation
The scheme comprises four key components with detailed financial allocations: offshore data acquisition (₹28,534 crore) including 2D seismic data acquisition (₹12,000 crore), 3D seismic data acquisition (₹12,534 crore), and NDR data re-processing with AI tools implementation (₹4,000 crore); offshore exploration and infrastructure-led production (₹55,200 crore) covering offshore exploration acceleration (₹43,200 crore), infrastructure-led deepwater production and exploration (₹10,000 crore), and development of oil and gas manufacturing and services zones (₹2,000 crore); and monitoring and support activities (₹350 crore) for digital interventions, monitoring and evaluation, human resource, awareness and outreach.
A critical feature of the scheme is the government's commitment to provide financial support of up to 50% of the cost of drilling deepwater exploration wells, with a cap of ₹675 crore per well, to reduce exploration risk and encourage investment. This support is particularly targeted at high-cost deepwater and ultra-deepwater basins including Krishna-Godavari, Cauvery, Mahanadi, and the Andaman region, where a single exploratory well costs approximately USD 125–150 million.
Expected Outcomes and Strategic Objectives
The scheme aims to drill 60 deepwater exploration wells and expects to increase India's domestic oil and gas production from approximately 62 MMTOE to 80 MMTOE annually. It also targets expanding the country's hydrocarbon resource base from 1.6 billion TOE to 2.2 billion TOE. The additional production has the potential to reduce crude oil imports by nearly ₹1 lakh crore annually, significantly strengthening India's energy security and reducing import dependence.
The scheme builds upon transformative reforms undertaken since 2014, including opening up over one million square kilometres of India's Exclusive Economic Zone for exploration by removing 99% of earlier "No-Go" areas, transitioning from Production Sharing Contracts to Revenue Sharing Contracts, modernizing the legal framework through the Oilfields (Regulation and Development) Amendment Act, 2025, and implementing the Petroleum and Natural Gas Rules, 2025 to promote ease of doing business and regulatory efficiency.