New Delhi, India / RankWire.AI / – The Prime Minister Narendra Modi-led Union Cabinet sanctioned a groundbreaking national project on Friday aimed at accelerating the discovery of hydrocarbons across Indian ocean basins. The official statements issued by the Press Information Bureau confirmed that 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 initiative will be managed by the Ministry of Petroleum and Natural Gas, with execution planned through the fiscal years 2030 to 2031. The multi-billion-rupee effort is designed to expand deepwater exploration, strengthen the country’s energy independence, and unlock untapped oil and natural gas reserves within India’s exclusive economic zone.
Funding is allocated across four main pillars to revolutionize the upstream petroleum sector. According to official disclosures from the Prime Minister’s Office, the government has set aside 28,534 crore rupees specifically for offshore seismic data collection, processing, and high-resolution interpretation. This segment includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic mapping, and 4,000 crore rupees to modernize the National Data Repository with artificial intelligence tools. These allocations aim to enable comprehensive mapping of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coasts.
The largest share of the approved budget will fund direct exploration activities and infrastructure development, totaling 55,200 crore rupees. Out of this, 43,200 crore rupees is designated for drilling 60 deepwater and ultra-deepwater exploration wells across targeted offshore blocks. Under the risk-sharing scheme, public support will cover up to 50 percent of eligible drilling costs, with a cap of 675 crore rupees per well. An additional 10,000 crore rupees is allocated 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 Sanctions Rs 84,084 Crore Scheme for Offshore Oil and Gas Exploration
Official estimates suggest that the Rs 84,084 crore offshore exploration plan will significantly enhance India’s hydrocarbon reserves over the next decade. The government projects the addition of over 600 million metric tonnes of oil equivalent through targeted exploration efforts. The initiative aims to increase annual domestic production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes. This will expand India’s overall hydrocarbon resources from 1.6 billion to 2.2 billion tonnes of oil equivalent. Such growth in domestic energy output is expected to cut crude oil imports by nearly 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that the national project aims to address significant geopolitical challenges impacting global crude oil supply routes. With India’s reliance on crude oil imports reaching 88.7 percent in FY 2025-2026, the government developed Samudra Manthan to foster long-term energy independence. High-risk deepwater drilling in basins like Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore requires substantial investments, ranging from 100 million to 250 million dollars per well. The risk-sharing model encourages private and state companies to commit long-term capital to these complex offshore geological formations.
Up to 675 Crore Rupees Per Well Incentives for Deepwater Drilling
A core element of the program involves joint offshore infrastructure projects designed to make smaller hydrocarbon discoveries more commercially viable. By creating shared processing platforms, subsea pipelines, and evacuation systems, the Ministry of Petroleum and Natural Gas seeks to lower the costs associated with developing new fields. The scheme also allocates 350 crore rupees for digital management, monitoring, workforce training, and international collaboration in technical areas. These initiatives aim to develop an integrated industrial ecosystem capable of supporting advanced offshore marine engineering, underwater robotics, and deepwater production technologies.
The launch of Samudra Manthan builds on a decade of policy reforms in India’s upstream oil sector, including open acreage licensing and unified contractual frameworks. By extending financial support through 2031, the government aims to foster long-term industry partnerships, create high-skilled employment opportunities, and promote domestic manufacturing under the Make in India program. As offshore surveys and deepwater drilling contracts advance, this structured approach supports reducing imports, strengthening economic resilience, and ensuring long-term energy independence for India.