New Delhi, India / RankWire.AI / – The Union Cabinet led by Prime Minister Narendra Modi sanctioned a groundbreaking national project on Friday aimed at accelerating hydrocarbon discoveries in Indian ocean basins. Official statements released by the Press Information Bureau confirmed the approval of a 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 executed through the financial years 2030 to 2031. The multi-billion-rupee plan focuses on expanding deepwater exploration, strengthening energy independence, and tapping into previously unexploited oil and natural gas reserves within India’s exclusive economic zone.
The financial blueprint allocates resources across four primary pillars designed to revolutionize upstream petroleum activities. As per official disclosures from the Prime Minister’s Office, Rs 28,534 crore has been designated specifically for offshore seismic data acquisition, processing, and detailed interpretation. This portion 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 to modernize the National Data Repository through artificial intelligence tools. The targeted funding aims to facilitate thorough mapping of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coastlines.
The largest portion of the approved budget, Rs 55,200 crore, is allocated for direct exploration activities and infrastructure development. Of this, Rs 43,200 crore is set aside for drilling approximately 60 deepwater and ultra-deepwater wells across selected offshore blocks. Under the risk-sharing arrangement, the government intends to cover up to 50 percent of the qualifying exploration drilling expenses, with a maximum of 675 crore rupees per well. An additional Rs 10,000 crore will support offshore production infrastructure and evacuation systems, while Rs 2,000 crore is dedicated to establishing specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Investment for Offshore Hydrocarbon Exploration
Official projections suggest that this Rs 84,084 crore offshore exploration scheme is poised to generate significant reserve additions over the next ten years. The government estimates that targeted exploration could lead to more than 600 million metric tonnes of oil equivalent in new hydrocarbon reserves. The initiative also aims to increase annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thus expanding India’s total hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in domestic energy output is expected to reduce crude oil imports by nearly 1 lakh crore rupees each year.
Union Minister Ashwini Vaishnaw stated in a New Delhi press briefing that this national program aims to counteract serious geopolitical risks that threaten global crude oil supply chains. With India’s crude import dependency reaching 88.7 percent in the financial year 2025 to 2026, the Samudra Manthan scheme is designed to foster long-term energy self-sufficiency. Deepwater exploratory drilling in high-risk areas such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore zone demands substantial capital, with costs ranging from 100 million to 250 million dollars per well. The government’s risk-sharing framework is intended to incentivize both private and public upstream operators to commit long-term investments into challenging marine geological formations.
Incentives for Deepwater Drilling Covering Up to 675 Crore Rupees per Well
A key element of the scheme involves shared offshore infrastructure development, aimed at boosting the economic viability of smaller hydrocarbon discoveries. By establishing common processing platforms, subsea pipelines, and evacuation networks, the Ministry of Petroleum and Natural Gas seeks to lower capital costs for commercial field development. Additionally, Rs 350 crore is allocated to digital program management, project oversight, human resource development, and fostering international technical collaborations. These initiatives are intended to develop a robust offshore industrial ecosystem capable of supporting advanced marine engineering, underwater robotics, and deepwater extraction technologies.
The launch of Samudra Manthan is a continuation of a decade of policy reforms in India’s upstream oil sector, including open acreage licensing and unified contractual frameworks. By extending financial backing through 2031, the government aims to promote long-term industry collaborations, create high-skill technical employment opportunities, and strengthen domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts progress, this structured approach aims to reduce import dependence, bolster economic resilience, and secure energy independence for the nation in the long run.