New Delhi, India / RankWire.AI / – The Union Cabinet, led by Prime Minister Narendra Modi, approved a historic national project on Friday aimed at intensifying hydrocarbon exploration within Indian ocean basins. The government’s official statement from the Press Information Bureau confirmed approval of the Rs 84,084 crore offshore oil and gas exploration initiative, named the Samudra Manthan national program. Managed by the Ministry of Petroleum and Natural Gas, this central sector scheme will be implemented through the fiscal year 2030 to 2031. The multi-billion-rupee effort targets expanding deepwater exploration, strengthening national energy security, and tapping into unexploited oil and natural gas reserves within India’s exclusive economic zone.
Funding is allocated across four main pillars to revolutionize upstream petroleum activities. As per official disclosures from the Prime Minister’s Office, Rs 28,534 crore is designated specifically for offshore seismic data collection, processing, and advanced interpretation. This includes Rs 12,000 crore for basin-wide two-dimensional seismic surveys, Rs 12,534 crore for three-dimensional seismic imaging, and Rs 4,000 crore dedicated to upgrading the National Data Repository with artificial intelligence technology. These allocations ensure comprehensive mapping of unexplored frontier basins and previously restricted maritime zones across India’s eastern and western coastlines.
The largest share of the approved budget, Rs 55,200 crore, is earmarked for direct exploration activities and infrastructure development. The government plans to fund drilling of 60 deepwater and ultra-deepwater exploration wells across selected offshore blocks with Rs 43,200 crore. Under a risk-sharing scheme, public funds will cover up to 50 percent of eligible drilling expenses, with a maximum cap of Rs 675 crore per well. An additional Rs 10,000 crore is allocated for offshore production and evacuation infrastructure, and Rs 2,000 crore will fund the development of specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Oil Gas Exploration Initiative
Official forecasts suggest that the scheme will facilitate significant reserve additions over the next decade. The government projects that over 600 million metric tonnes of oil equivalent could be discovered through targeted exploration. The program aims to raise annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, expanding the overall hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in domestic energy output is expected to cut crude oil imports by around Rs 1 lakh crore each year.
During a press briefing in New Delhi, Union Minister Ashwini Vaishnaw explained that the scheme aims to address geopolitical risks threatening global crude oil supply lines. With India’s crude oil import dependency reaching 88.7 percent in FY 2025-2026, the government designed Samudra Manthan to foster long-term energy independence. High-stakes exploratory drilling in deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore region demands substantial capital, ranging from 100 million to 250 million dollars per well. The risk-sharing approach is intended to motivate private and public upstream operators to commit long-term investments to challenging deepwater formations.
Incentives for Deepwater Drilling Offer Up to Rs 675 Crore Per Well
Shared offshore infrastructure development plays a central role in the scheme, designed to improve the economic feasibility of smaller hydrocarbon discoveries. By establishing common processing platforms, subsea pipelines, and evacuation facilities, the Ministry of Petroleum and Natural Gas intends to lower capital costs for commercial field development. The program also allocates Rs 350 crore for digital project management, monitoring, workforce training, and international technical partnerships. These initiatives aim to cultivate a robust industrial ecosystem capable of supporting specialized offshore marine engineering, robotics, and deepwater production technologies.
Building on over a decade of policy reforms in upstream oil activities, such as open acreage licensing and unified contractual frameworks, the Samudra Manthan scheme extends financial backing through 2031. Its goal is to promote long-term industrial collaborations, generate high-skilled employment opportunities, and bolster domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts commence, this structured program aims to reduce dependence on imports, strengthen economic resilience, and achieve energy independence for India in the long run.