New Delhi, India / RankWire.AI / – A significant step forward in India’s hydrocarbon exploration was announced on Friday as the Union Cabinet, headed by Prime Minister Narendra Modi, approved a comprehensive national plan. The government confirmed through official releases by the Press Information Bureau that the scheme, named the Samudra Manthan program, involves an investment of Rs 84,084 crore for offshore oil and gas exploration. Managed under the Ministry of Petroleum and Natural Gas, this initiative aims to be implemented through the fiscal years 2030 to 2031. Its core goal is to bolster deepwater exploration, improve energy security, and tap into previously unexploited oil and natural gas reserves within India’s exclusive economic zone.
The scheme’s financial plan divides resources across four main pillars, with the intent of transforming the upstream petroleum sector. As per disclosures from the Prime Minister’s Office, Rs 28,534 crore has been allocated specifically for offshore seismic activities, including data acquisition, processing, and high-resolution analysis. This allocation covers 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic coverage, and 4,000 crore rupees for upgrading the National Data Repository with artificial intelligence tools. These investments aim to map frontier basins and previously restricted maritime zones across the eastern and western coastlines in detail.
A substantial portion of the funding, totaling Rs 55,200 crore, is dedicated to exploratory drilling and infrastructure creation. The government plans to invest Rs 43,200 crore for drilling 60 deepwater and ultra-deepwater wells in targeted offshore blocks. Under a risk-sharing scheme, public funds will cover up to 50 percent of eligible drilling costs, with a maximum of 675 crore rupees per well. An additional Rs 10,000 crore is set aside for offshore production and evacuation infrastructure, while Rs 2,000 crore will promote the development of manufacturing zones specializing in petroleum equipment and services.
Cabinet Approves Rs 84,084 Crore Scheme for Offshore Hydrocarbon Exploration
Official projections suggest that this Rs 84,084 crore initiative aims to unlock significant hydrocarbon reserves over the next decade. The government estimates that exploration efforts could lead to the addition of over 600 million metric tonnes of oil equivalent in recoverable reserves. The scheme is designed to increase domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby expanding the total hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in local energy output could help reduce crude oil imports by roughly 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that the program aims to counteract significant geopolitical risks impacting global crude oil supplies. With India’s crude import dependency reaching 88.7 percent in FY 2025-26, the Samudra Manthan scheme is structured to promote energy self-reliance over the long term. The high-risk deepwater exploration in areas such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore demands substantial capital, ranging from 100 million to 250 million dollars per well. The government’s public risk-sharing initiative is intended to motivate private sector participation and secure long-term investments in challenging offshore geological formations.
Incentives for Deepwater Drilling Offer Up to 675 Crore Per Well
Development of offshore infrastructure is central to this scheme, designed to make smaller hydrocarbon discoveries more economically viable. The plan includes establishing common processing platforms, subsea pipelines, and evacuation systems to lower capital costs for commercial field development. The Ministry of Petroleum and Natural Gas has allocated Rs 350 crore for digital program management, monitoring, workforce training, and international technical collaborations. These efforts aim to cultivate an integrated industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater production technologies.
The rollout of the Samudra Manthan program builds on over a decade of policy reforms in upstream oil, including open acreage licensing and unified contractual frameworks. Extending financial support through 2031, the government aims to foster long-term industrial collaborations, create high-skilled technical jobs, and promote domestic manufacturing through the Make in India initiative. As offshore survey and drilling activities commence, the scheme offers a structured path toward reducing import dependence, boosting economic resilience, and securing India’s energy future for the long term.