New Delhi, India / RankWire.AI / – The Union Cabinet, headed by Prime Minister Narendra Modi, sanctioned a groundbreaking national project on Friday aimed at boosting hydrocarbon discoveries in Indian ocean regions. The official statements issued by the Press Information Bureau confirmed that the Cabinet has approved a scheme worth Rs 84,084 crore for offshore oil and gas exploration, called the Samudra Manthan national program. Managed under the Ministry of Petroleum and Natural Gas, this sector-specific initiative will be carried out through the 2030 to 2031 fiscal year. The multi-billion-rupee plan is designed to expand deepwater exploration, strengthen energy security for the country, and unlock untapped oil and natural gas reserves within India’s exclusive economic zone.
Funding allocations focus on four main pillars to reshape India’s upstream petroleum sector. According to official disclosures from the Prime Minister’s Office, a sum of 28,534 crore rupees has been designated for offshore seismic data acquisition, processing, and detailed interpretation. This portion of the budget includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic coverage, and 4,000 crore rupees dedicated to updating the National Data Repository with artificial intelligence technologies. These allocations aim to facilitate 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—55,200 crore rupees—is directed toward exploratory activities and infrastructure development. The government has set aside 43,200 crore rupees to fund drilling operations for 60 deepwater and ultra-deepwater exploration wells across designated offshore blocks. Under a risk-sharing framework, public funding will cover up to 50 percent of eligible drilling expenses, with a maximum of 675 crore rupees per well. An additional 10,000 crore rupees are allocated for offshore production and evacuation infrastructure, while 2,000 crore rupees are set aside for establishing specialized manufacturing zones dedicated to petroleum equipment and related technical services.
Cabinet Approves Rs 84,084 Crore Scheme for Offshore Oil and Gas Exploration
Official forecasts highlight that the Rs 84,084 crore offshore exploration plan aims to secure significant reserve growth over the next decade. Government estimates suggest the addition of over 600 million metric tonnes of oil equivalent in hydrocarbon reserves through focused exploration efforts. The initiative intends to increase annual domestic production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby expanding India’s total hydrocarbon resources 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 approximately 1 lakh crore rupees each year.
Union Minister Ashwini Vaishnaw, speaking during a press conference in New Delhi, emphasized that the scheme aims to counteract critical geopolitical risks impacting global crude oil supplies. With India’s crude oil import dependency projected to reach 88.7 percent in FY 2025–2026, the government designed Samudra Manthan to bolster long-term energy independence. High-risk exploratory drilling in deepwater regions such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore area involves substantial capital investments, ranging from 100 million to 250 million dollars per well. Public risk-sharing mechanisms are intended to motivate private and state-run upstream operators to commit long-term funds to challenging offshore geological formations.
Deepwater Drilling Support Offers Up to 675 Crore per Well
A key part of the program involves shared offshore infrastructure development, aiming to make smaller hydrocarbon discoveries more economically feasible. By creating common processing platforms, subsea pipelines, and evacuation facilities, the Ministry of Petroleum and Natural Gas seeks to lower the costs associated with commercial field development. The scheme allocates 350 crore rupees for digital project management, monitoring, workforce training, and international technical cooperation. These initiatives are designed to cultivate an integrated industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater production technologies.
The rollout of Samudra Manthan extends a decade of policy reforms in India’s upstream oil sector, including open acreage licensing and unified contractual arrangements. With financial backing lasting through 2031, the government aims to foster enduring industrial partnerships, generate high-tech employment, and promote domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts proceed, the scheme charts a clear course toward reducing import dependence, strengthening economic resilience, and achieving long-term energy sovereignty for India.
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