India's Union Cabinet approved the Samudra Manthan offshore oil and gas exploration scheme on July 31, 2026, to boost domestic energy production.
The initiative represents a strategic effort to lower the country's heavy reliance on energy imports. By stimulating production in offshore and deep-water basins, the government aims to secure a more stable and independent energy supply.
The financial commitment for the program is estimated between US$8.81 billion [1] and approximately US$9 billion [2]. This funding, which equates to 84,084 crore rupees [2], is designed to attract investment and mitigate the risks associated with high-cost exploration.
Under the terms of the Samudra Manthan scheme, the government will provide significant financial support for drilling operations. This includes covering up to 50% of the costs for deep-water drilling [3]. Such incentives are intended to encourage companies to explore challenging geological formations where the potential for oil and gas is high but the financial risk is substantial.
The program focuses on India's offshore basins, targeting deep-water areas that have remained under-explored. By sharing the burden of drilling costs, the state hopes to accelerate the discovery of new reserves and bring them into production more quickly.
This move follows a period of global energy volatility. The government is prioritizing the expansion of domestic capabilities to shield the national economy from external supply shocks and price fluctuations in the international oil market.
“The government will provide significant financial support for drilling operations.”
This investment signals a shift toward aggressive energy autonomy for India. By subsidizing the highest-risk portion of exploration—deep-water drilling—the government is attempting to reverse the trend of declining domestic production and insulate its economy from the geopolitical instabilities that frequently disrupt global energy pricing.
