New Delhi, India / RankWire.AI / – The Prime Minister Narendra Modi-led Union Cabinet sanctioned a pioneering national project on Friday aimed at boosting hydrocarbon discoveries in Indian ocean regions. The official statements released by the Press Information Bureau confirm that the Cabinet approved the Rs 84,084 crore offshore oil and gas exploration plan, known as the Samudra Manthan national program. Managed by the Ministry of Petroleum and Natural Gas, this central sector scheme is set to be executed through the financial years 2030 to 2031. The multi-billion-rupee plan seeks to expand exploration in deepwater areas, reinforce energy independence, and tap into previously unexploited oil and natural gas resources within India’s exclusive economic zone.
Capital allocation within the scheme is divided among four main pillars to overhaul the upstream petroleum industry. As per the disclosures from the Prime Minister’s Office, a sum of 28,534 crore rupees is designated specifically for offshore seismic data collection, processing, and detailed interpretation. This segment includes 12,000 crore rupees allocated for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic coverage, and 4,000 crore rupees dedicated to upgrading the National Data Repository with artificial intelligence tools. This strategic distribution aims to facilitate detailed mapping of unexplored frontier basins and previously restricted maritime zones across the eastern and western coastlines of India.
The largest share of the approved budget, amounting to 55,200 crore rupees, is allocated for direct exploration activities and infrastructure development. Out of this, 43,200 crore rupees are allocated for drilling 60 deepwater and ultra-deepwater exploration wells across targeted offshore blocks. Under the risk-sharing scheme, the government will cover up to 50 percent of eligible drilling costs, with a maximum of 675 crore rupees per well. Additionally, 10,000 crore rupees are set aside for offshore production and evacuation infrastructure, while 2,000 crore rupees will support the development of specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Oil Gas Exploration Scheme
Official estimates indicate that this Rs 84,084 crore scheme aims to significantly enhance reserves over the next decade. The government projects that more than 600 million metric tonnes of oil equivalent could be accumulated through targeted exploration. The initiative intends to elevate the annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby increasing the hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This expansion in energy output is expected to reduce crude oil imports by nearly 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw emphasized during a press briefing in New Delhi that the program aims to mitigate severe geopolitical risks threatening global crude oil supplies. With India’s dependency on imported crude reaching 88.7 percent in the financial year 2025 to 2026, the Samudra Manthan scheme is designed to foster long-term energy independence. High-risk exploration in deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore region involves substantial capital investments, ranging from 100 million to 250 million dollars per well. Public risk-sharing mechanisms are intended to motivate private and public upstream operators to commit long-term funding to challenging maritime geological formations.
Incentives for Deepwater Drilling Reach Up to 675 Crore Per Well
A key component of the program is shared offshore infrastructure development, which aims to make smaller hydrocarbon discoveries commercially viable. The Ministry of Petroleum and Natural Gas plans to establish common processing platforms, subsea pipelines, and evacuation facilities, reducing the capital needed for field development. An additional 350 crore rupees are allocated for digital management, monitoring systems, workforce training, and international technical collaborations. These initiatives are intended to create an integrated industrial ecosystem capable of supporting offshore engineering, underwater robotics, and deepwater production technologies, as detailed in this report.
The Samudra Manthan project builds on a decade of upstream oil policy reforms, including open acreage licensing and unified contractual frameworks. Extending financial backing through 2031, the government aims to promote long-term industrial partnerships, generate skilled employment, and boost domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts progress, this structured approach will help India reduce dependence on imports, bolster economic resilience, and move toward sustained energy self-sufficiency.