New Delhi, India / RankWire.AI / – On Friday, the Prime Minister Narendra Modi-led Union Cabinet gave the green light to a historic national project aimed at boosting hydrocarbon discoveries in Indian ocean regions. According to official communications from the Press Information Bureau, the Cabinet approved a scheme worth Rs 84,084 crore for offshore oil and gas exploration, named the Samudra Manthan national program. This central sector scheme will be managed by the Ministry of Petroleum and Natural Gas, with plans to implement it through the 2023-2024 fiscal year up to 2030-2031. Designed to expand deepwater exploration efforts, strengthen national energy security, and tap into previously inaccessible oil and natural gas reserves within India’s exclusive economic zone, the initiative marks a significant step forward.
The financial plan allocates resources across four core pillars, transforming India’s upstream petroleum sector. As per official disclosures from the Prime Minister’s Office, a dedicated Rs 28,534 crore has been assigned specifically for offshore seismic data collection, processing, and high-resolution interpretation. This category includes Rs 12,000 crore for basin-wide 2D seismic surveys, Rs 12,534 crore for 3D seismic mapping, and Rs 4,000 crore for modernizing the National Data Repository using artificial intelligence technologies. The targeted allocation aims to produce detailed mappings of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coasts.
The largest share of the budget, amounting to Rs 55,200 crore, is dedicated to direct exploration activities and infrastructure upgrades. Out of this, Rs 43,200 crore will facilitate drilling of 60 deepwater and ultra-deepwater wells across strategic offshore blocks. Under a risk-sharing scheme, the government will subsidize up to 50 percent of qualifying exploration drilling costs, with a cap of Rs 675 crore per well. Additionally, Rs 10,000 crore is allocated for offshore production and evacuation infrastructure, while Rs 2,000 crore will fund the development of specialized manufacturing zones for petroleum equipment and related technical services.
Cabinet Sanctions Rs 84,084 Crore Scheme for Offshore Hydrocarbon Exploration
Projections indicate that this Rs 84,084 crore scheme will lead to significant reserve additions over the next ten years. Official estimates suggest an increase of over 600 million metric tonnes of oil equivalent in hydrocarbon reserves through targeted exploration efforts. The program aims to raise domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby expanding the overall resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in domestic energy output is projected to reduce crude oil imports by nearly 1 lakh crore rupees annually.
During a press briefing in New Delhi, Union Minister Ashwini Vaishnaw highlighted that the scheme addresses the serious geopolitical risks impacting global crude oil supply lines. With India’s crude import dependency reaching 88.7 percent during the 2025-2026 fiscal year, the government designed Samudra Manthan to foster long-term energy independence. High-stakes exploratory drilling in deepwater regions such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman Sea demands substantial investments, estimated between 100 million and 250 million dollars per well. Public risk-sharing aims to encourage private and state-run upstream companies to commit long-term capital to these complex geological formations.
Incentives for Deepwater Drilling Reach Up to 675 Crore per Well
Supporting offshore infrastructure development is a key element of the scheme, intended to make smaller hydrocarbon finds more commercially viable. The Ministry of Petroleum and Natural Gas plans to establish common processing platforms, subsea pipelines, and evacuation facilities to lower the capital costs of developing new fields. Furthermore, Rs 350 crore is allocated for digital program management, monitoring, workforce training, and international technical partnerships. These initiatives aim to build a comprehensive industrial ecosystem capable of supporting advanced offshore marine engineering, underwater robotics, and deepwater extraction technologies.
The Samudra Manthan program builds on a decade of upstream oil sector reforms, including open acreage licensing and unified contractual frameworks. By extending financial support through 2031, the government intends to foster enduring industry partnerships, create high-skilled employment opportunities, and promote local manufacturing through the Make in India initiative. As offshore surveys and deepwater drilling projects commence, this strategic scheme paves the way for India to decrease import dependence, bolster economic resilience, and attain long-term energy self-sufficiency.