The Union Cabinet of India approved the ‘Samudra Manthan’ National Offshore Exploration Scheme with an outlay of Rs 84,084 crore [1].
This initiative represents a strategic effort to reduce India's reliance on foreign energy. By increasing domestic oil and gas production, the government aims to lower the national crude oil import bill and strengthen energy security.
The scheme focuses on harnessing energy resources within India’s offshore basins [2]. To encourage exploration in high-risk areas, the government will provide a cost-share of up to 50% for deep-water drilling costs [3]. This financial support is intended to mitigate the high expenses associated with extracting resources from deep seabed environments.
Implementation of the program is planned to continue through Fiscal Year 2030-31 [4]. The total investment is estimated at approximately $8.8 billion [3].
Officials said the program is designed to maximize the potential of the country's maritime territories. The government intends to use these funds to modernize exploration techniques and attract further investment into the offshore sector. The project will target specific basins where geological data suggests significant untapped reserves.
By targeting a timeline that extends to 2031, the government is positioning the scheme as a long-term pillar of its industrial strategy. This timeline allows for the multi-year cycles required for seismic surveys, exploratory drilling, and the eventual establishment of production platforms.
“The government will provide a cost-share of up to 50% for deep-water drilling costs.”
The Samudra Manthan scheme signals India's commitment to energy independence despite a global shift toward renewables. By subsidizing the high cost of deep-water drilling, the Indian government is attempting to unlock difficult-to-reach reserves that private firms might otherwise avoid due to risk. If successful, this could significantly alter India's trade balance by reducing the volume of expensive crude oil imports.
