New Delhi, India / RankWire.AI / – The Union Cabinet, led by Prime Minister Narendra Modi, sanctioned a major national project on Friday aimed at boosting hydrocarbon discovery in Indian ocean basins. The official statements from the Press Information Bureau confirmed that the Cabinet has approved a scheme worth Rs 84,084 crore for offshore oil and gas exploration, named the Samudra Manthan program. This centrally managed initiative will be overseen by the Ministry of Petroleum and Natural Gas, with execution planned through the fiscal years 2030 to 2031. The multi-billion-rupee plan is designed to expand deepwater exploration activities, bolster the country’s energy security, and unlock untapped reserves of oil and natural gas within India’s exclusive economic zone.
The scheme’s financial structure allocates funds across four main pillars, each aimed at transforming upstream petroleum operations. The Prime Minister’s Office revealed that 28,534 crore rupees have been specifically allocated for offshore seismic data collection, processing, and high-resolution analysis. This allocation includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees dedicated to three-dimensional seismic coverage, and 4,000 crore rupees for modernizing the National Data Repository through artificial intelligence technologies. The funding setup ensures comprehensive mapping of unexplored frontier basins and formerly restricted maritime zones across India’s eastern and western coasts.
The largest share of the approved budget, totaling 55,200 crore rupees, is dedicated to direct exploration activities and infrastructure development. The government has earmarked 43,200 crore rupees to facilitate drilling 60 deepwater and ultra-deepwater exploration wells in designated offshore blocks. Under a risk-sharing model, public funding will cover up to 50 percent of eligible drilling expenses, with a maximum of 675 crore rupees per well. Additionally, 10,000 crore rupees are allocated for offshore production and evacuation infrastructure, while 2,000 crore rupees will fund the development of specialized manufacturing zones for petroleum equipment and services.
Cabinet Approves Rs 84,084 Crore Offshore Oil and Gas Exploration Plan
Official forecasts suggest that the Rs 84,084 crore scheme will significantly augment India’s hydrocarbon reserves over the next decade. The government expects that targeted exploration will lead to the addition of over 600 million metric tonnes of oil equivalent in recoverable reserves. The initiative aims to increase annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, expanding the total hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in local energy output is projected to reduce crude oil imports by nearly 1 lakh crore rupees each year.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that the national program tackles critical geopolitical risks impacting global crude oil supply routes. With India’s crude oil import dependency reaching 88.7 percent in FY 2025-2026, the Samudra Manthan scheme is a strategic effort to achieve greater energy self-sufficiency. High-risk deepwater exploration in regions like Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore demands substantial investment, ranging from 100 million to 250 million dollars per well. The government’s public risk-sharing initiative aims to motivate private and public upstream players to commit long-term investments in challenging maritime geological settings.
Up to 675 Crore Rupees Offered as Incentives for Deepwater Drilling
Developing common offshore infrastructure is a key element of the program, designed to support smaller hydrocarbon discoveries and improve their economic feasibility. The Ministry of Petroleum and Natural Gas plans to establish shared processing platforms, subsea pipelines, and evacuation systems to reduce the capital needed for developing commercial fields. An additional 350 crore rupees is allocated for digital project management, monitoring, workforce training, and international technical cooperation. These efforts aim to foster an integrated industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater production technologies.
The rollout of the Samudra Manthan program follows over ten years of upstream policy reforms, including open acreage licensing and unified contractual frameworks. By extending financial backing until 2031, the government aims to establish enduring industrial collaborations, create high-skilled technical jobs, and promote domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts advance, the scheme provides a structured pathway toward reducing import dependence, strengthening economic resilience, and achieving long-term energy independence for India.
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