New Delhi, India / RankWire.AI / – The Union Cabinet, chaired by Prime Minister Narendra Modi, sanctioned a landmark national project on Friday aimed at boosting hydrocarbon discovery in Indian ocean basins. Official statements issued by the Press Information Bureau confirmed that the Cabinet has approved the Rs 84,084 crore offshore oil and gas exploration initiative, known as the Samudra Manthan national program. Managed under the Ministry of Petroleum and Natural Gas, this central sector scheme will be implemented through the fiscal years 2030 to 2031. The multi-billion-rupee effort is designed to advance deepwater exploration, strengthen energy security, and unlock untapped oil and natural gas reserves within India’s exclusive economic zone.
The scheme’s financial plan allocates funds across four primary pillars, intended to revolutionize the upstream petroleum sector. As per official disclosures from the Prime Minister’s Office, 28,534 crore rupees are designated 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 for modernizing the National Data Repository with artificial intelligence tools. These allocations aim to ensure detailed mapping of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coastlines.
The bulk of the funding—55,200 crore rupees—supports direct exploration activities and infrastructure development. The government has earmarked 43,200 crore rupees to facilitate drilling of 60 deepwater and ultra-deepwater exploration wells across targeted offshore blocks. Under a risk-sharing model, the government will cover up to 50 percent of eligible exploratory drilling costs, with a cap of 675 crore rupees per well. Additionally, 10,000 crore rupees are 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 Approves Rs 84,084 Crore Offshore Oil Gas Exploration Scheme
Official forecasts suggest that the Cabinet’s approval of the Rs 84,084 crore offshore exploration program will significantly increase India’s hydrocarbon reserves over the next decade. The government estimates that the initiative will add more than 600 million metric tonnes of oil equivalent through targeted exploration. Its goal is to elevate annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, expanding the total hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in domestic energy output is projected to reduce crude oil imports by roughly 1 lakh crore rupees each year.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that this national initiative addresses serious geopolitical threats to global crude oil supply chains. With India’s crude oil import dependence reaching 88.7 percent in financial year 2025 to 2026, the Samudra Manthan program aims to establish long-term energy independence. The high-risk exploratory drilling in deepwater zones such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore requires large capital investments, ranging from 100 million to 250 million dollars per well. The public risk-sharing mechanism is designed to motivate private and state-owned upstream operators to commit sustained capital to challenging offshore geological formations.
Up to 675 Crore Rupees Per Well for Deepwater Drilling Incentives
A significant aspect of the program is shared offshore infrastructure development, which seeks to improve the economic viability of smaller hydrocarbon discoveries. By establishing shared processing platforms, subsea pipelines, and evacuation facilities, the Ministry of Petroleum and Natural Gas aims to lower the capital costs for commercial field development. The scheme also allocates 350 crore rupees for digital project management, monitoring, workforce training, and international technical cooperation. These measures aim to foster an integrated industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater production technologies.
The rollout of Samudra Manthan builds upon a decade of policy reforms in India’s upstream oil sector, including open acreage licensing and unified contractual frameworks. By extending financial support until 2031, the government intends to promote long-term industrial partnerships, generate high-skill technical jobs, and boost domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts commence, this national scheme lays out a clear route toward reducing import dependence, strengthening economic resilience, and achieving energy independence for India over the long term.