New Delhi, India / RankWire.AI / – The Prime Minister Narendra Modi-led Union Cabinet has given the green light to a historic national project on Friday, aimed at boosting hydrocarbon exploration within Indian ocean basin areas. Confirmed by official statements from the Press Information Bureau, the scheme approved involves an Rs 84,084 crore investment in offshore oil and gas exploration, known as the Samudra Manthan initiative. Managed under the Ministry of Petroleum and Natural Gas, this central sector scheme will run through the fiscal years ending in 2030 to 2031. The multi-billion-rupee plan is designed to accelerate deepwater exploration efforts, strengthen energy security for the nation, and tap into previously unexploited oil and natural gas deposits within India’s exclusive economic zone.
The financial blueprint directs resources into four main pillars to overhaul the upstream petroleum industry. According to details released by the Prime Minister’s Office, a sum of 28,534 crore rupees is allocated specifically for offshore seismic data collection, processing, and high-resolution interpretation activities. This budget includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic imaging, and 4,000 crore rupees dedicated to upgrading the National Data Repository with artificial intelligence technologies. These allocations aim to thoroughly map unexplored frontier basins and previously restricted maritime zones across India’s eastern and western coasts.
The largest portion of the approved funds, amounting to 55,200 crore rupees, will support direct exploration activities and infrastructure projects. Out of this, 43,200 crore rupees are assigned for drilling 60 deepwater and ultra-deepwater wells in targeted offshore blocks. To encourage exploration, a risk-sharing model will see public funds covering up to 50 percent of eligible drilling expenses, with a ceiling of 675 crore rupees per well. Additionally, 10,000 crore rupees are set aside for offshore production and evacuation infrastructure development, while 2,000 crore rupees will fund the establishment of specialized manufacturing zones for petroleum equipment and related services.
Cabinet Endorses Rs 84,084 Crore Funding for Offshore Oil and Gas Search
Official forecasts indicate that this Rs 84,084 crore scheme aims to add significant reserves within the next ten years. The government anticipates the discovery of over 600 million metric tonnes of oil equivalent through focused exploration activities. The scheme’s goal is to elevate annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby increasing the country’s hydrocarbon reserves from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in local energy output is projected to save around 1 lakh crore rupees annually in crude oil imports.
Union Minister Ashwini Vaishnaw, speaking during a press briefing in New Delhi, emphasized that the initiative addresses the heightened geopolitical risks threatening global crude oil supply routes. With India’s reliance on imported crude reaching 88.7 percent in the fiscal year 2025 to 2026, the government designed Samudra Manthan to foster long-term energy self-sufficiency. High-stakes exploration in deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore regions involves substantial capital outlay, ranging from 100 million to 250 million dollars per well. The risk-sharing mechanism aims to motivate private and public upstream operators to invest long-term capital into challenging marine geological environments.
Incentives for Deepwater Drilling Offer Up to 675 Crore Per Well
A core aspect of the scheme is the development of offshore infrastructure, intended to make smaller hydrocarbon discoveries more commercially viable. The Ministry of Petroleum and Natural Gas intends to establish shared processing platforms, subsea pipelines, and evacuation infrastructure to lower development costs for new fields. Additional funding of 350 crore rupees will support digital management programs, monitoring, human resource development, and international technical collaborations. These measures are crafted to cultivate an integrated industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater production technologies.
The implementation of Samudra Manthan extends over a decade, building on prior policy reforms in the upstream sector such as open acreage licensing and unified contractual frameworks. The government’s commitment through 2031 aims to foster long-term industry collaborations, create high-skilled technical jobs, and promote domestic manufacturing in line with the Make in India initiative. As offshore surveys and deepwater drilling projects commence, this comprehensive scheme paves the way toward reducing import dependence, strengthening economic resilience, and securing energy independence for India in the long run.