The Indian government has approved Samudra Manthan – the National Offshore Exploration Scheme on 31 July 2026, with a Phase-I outlay of ₹84,084 crore up to FY 2030–31. This comprehensive initiative aims to unlock India's vast offshore hydrocarbon potential, estimated at over 5,600 MMTOE (Million Metric Tonnes of Oil Equivalent) in eastern and western offshore basins extending to water depths of up to 3,000 metres.
The scheme addresses India's status as the world's third-largest crude oil consumer with an annual import bill of nearly USD 144 billion (approximately ₹13 lakh crore). It seeks to strengthen energy security by expanding domestic production to reduce import dependence and conserve foreign exchange.
Samudra Manthan comprises four key components with detailed allocations: Offshore data acquisition receives ₹28,534 crore (including ₹12,000 crore for 2D seismic basin-wide coverage, ₹12,534 crore for 3D seismic acquisition, and ₹4,000 crore for National Data Repository re-processing with AI tools). Offshore exploration and infrastructure-led production receives ₹55,200 crore (including ₹43,200 crore for drilling 60 deepwater and ultra-deepwater wells with financial support covering up to 50% of eligible drilling cost or ₹675 crore per well, ₹10,000 crore for shared production and evacuation facilities, and ₹2,000 crore for developing an integrated Oil and Gas Manufacturing and Services Zone). An additional ₹350 crore supports monitoring, digital interventions, evaluation, and outreach activities.
The scheme is expected to deliver substantial outcomes 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 and peak potential of 20 MMTOE. This additional output could reduce crude imports by nearly ₹1 lakh crore annually while promoting investments across the value chain, creating large-scale employment, and strengthening domestic manufacturing capabilities under Make in India and Atmanirbhar Bharat initiatives.
The initiative builds upon recent structural reforms in India's hydrocarbon sector, including the opening of over one million square kilometres of Exclusive Economic Zone for exploration, 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 172 blocks covering nearly 3.8 lakh square kilometres being awarded under the Open Acreage Licensing Programme with committed investments exceeding USD 4.3 billion.