The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the ‘Samudra Manthan’ National Offshore Exploration Scheme on Thursday, July 31, 2026, with a total outlay of Rs 84,084 crore for implementation through FY2030-31.
The Central Sector Scheme will be implemented by the Ministry of Petroleum & Natural Gas and aims to catalyse reserve accretion of more than 600 million metric tonnes of oil equivalent while expanding offshore exploration and domestic production.
More than Rs 43,200 crore of the outlay is reserved for deep-sea and ultra-deep-sea drilling over five years through 2031, with per-well support of up to Rs 650 crore in deepwater and ultra-deepwater zones, where drilling costs can range from Rs 950 crore to Rs 2,400 crore per well.
The scheme also allocates Rs 10,000 crore for common infrastructure development, Rs 28,534 crore for offshore data acquisition, and Rs 2,000 crore for oil and gas manufacturing and services zones.
Union minister Ashwini Vaishnaw called the scheme a ‘major game-changer’ that would help India substantially raise domestic production and reduce foreign currency spent on crude oil imports.
The scheme is expected to generate large-scale employment as offshore exploration activity expands across the country’s basins in the years ahead, officials said.
The petroleum ministry has previously run rounds of offshore acreage auctions under the Open Acreage Licensing Policy, aimed at drawing both public and private sector investment into exploration blocks.
Deep-sea and ultra-deep-sea drilling is considered technically demanding and capital-intensive, which is why the scheme sets aside dedicated funding specifically for wells in those zones.
The scheme’s data acquisition component is intended to help identify new sedimentary basins and improve the accuracy of reserve estimates before companies commit to expensive drilling programmes.
India currently imports a large share of its crude oil requirement, a dependence successive governments have sought to reduce through incentives for domestic exploration and production.
Photo: Indian Navy, Wikimedia Commons, GODL-India
