Samudra Manthan – National Offshore Exploration Scheme
The Indian government has approved the Samudra Manthan National Offshore Exploration Scheme on July 31, 2026, with a Phase-I outlay of ₹84,084 crore extending through FY 2030-31. This comprehensive initiative aims to address India's significant energy import dependence, where the country currently spends nearly USD 144 billion (approximately ₹13 lakh crore) annually on crude oil imports as the world's third-largest consumer.
The scheme focuses on unlocking India's vast offshore hydrocarbon potential, particularly in deepwater and ultra-deepwater basins extending to depths of up to 3,000 meters, which are estimated to hold over 5,600 MMTOE (Million Metric Tonnes of Oil Equivalent) of hydrocarbon potential. Recent discoveries in the Cauvery, Mahanadi, and Andaman basins have reinforced this potential.
Four-Pronged Approach with Detailed Allocation
The scheme is structured around four key components with specific budgetary allocations:
1. Seismic Data Acquisition, Processing, and Interpretation (₹28,534 crore): This includes ₹12,000 crore for 2D seismic data acquisition for basin-wide coverage, ₹12,534 crore for 3D seismic data acquisition using advanced techniques, and ₹4,000 crore for re-processing older data in the National Data Repository with modern tools and artificial intelligence implementation.
2. Accelerated Offshore Exploration (₹43,200 crore): This component funds drilling of 60 deepwater and ultra-deepwater wells with financial support covering up to 50% of eligible drilling costs or ₹675 crore per well, whichever is lower. The scheme is open to both public and private Exploration and Production operators.
3. Common Offshore Infrastructure (₹10,000 crore): Provides shared production and evacuation facilities in select basins like Mahanadi and Kutch to lower project costs and monetize idle discoveries.
4. Oil and Gas Manufacturing and Services Zone (₹2,000 crore): Establishes an integrated manufacturing zone to build domestic capabilities in manufacturing, repair, warehousing, engineering, and services.
An additional ₹350 crore is allocated for monitoring, digital interventions, evaluation, human resources, awareness, outreach, events, and media.
Expected Outcomes and Targets
The scheme aims to deliver substantial economic and energy security benefits, including an increase of over 600 MMTOE of hydrocarbon reserves, expanding India's resource base from 1.6 billion to 2.2 billion Tonnes of Oil Equivalent. Annual domestic production is targeted to rise from around 62 MMTOE to 80 MMTOE, with incremental production of 10-15 MMTOE expected and peak potential of 20 MMTOE. This additional output could reduce crude imports by nearly ₹1 lakh crore annually, generating significant foreign exchange savings.
The initiative also promises to promote investments across the value chain, drive GDP expansion, create large-scale employment in exploration, production, and allied activities, and strengthen domestic manufacturing under the Make in India and Atmanirbhar Bharat initiatives.
Context of Recent Reforms
The scheme builds upon recent structural reforms in India's hydrocarbon sector, including the opening up of over one million square kilometers of the Exclusive Economic Zone for exploration (with 99% of "No-Go" areas removed), the Hydrocarbon Exploration and Licensing Policy (HELP) launched in 2016, the transition from Production Sharing Contracts to Revenue Sharing Contracts in 2016, the Oilfields (Regulation and Development) Amendment Act, 2025, and the Petroleum and Natural Gas Rules, 2025. These reforms have resulted in 81% of active exploration acreage being awarded after 2014, with 172 blocks covering nearly 3.8 lakh square kilometers awarded under the Open Acreage Licensing Programme, committing investments exceeding USD 4.3 billion.