What is Samudra Manthan Scheme?
Samudra Manthan Scheme, formally called the National Offshore Exploration Scheme, is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas aimed at accelerating exploration and production of India’s offshore oil and gas resources.
The Union Cabinet approved the scheme on 31 July 2026 with an outlay of ₹84,084 crore, to be implemented up to FY 2030–31.
The scheme operationalises the idea of a modern-day “Samudra Manthan” announced by the Prime Minister in his Independence Day 2025 address, with the objective of unlocking India’s offshore hydrocarbon potential and reducing import dependence.
Major Components
The scheme adopts an integrated approach covering the entire offshore exploration value chain.
Offshore seismic data acquisition
A large-scale programme will acquire and process modern 2D and 3D seismic data to improve geological understanding of offshore basins.
The government has allocated ₹28,534 crore for offshore data acquisition and processing.
Deepwater and ultra-deepwater drilling
The scheme provides for drilling 60 deepwater exploration wells.
Around ₹43,200 crore has been allocated for this component.
The government will provide financial support of up to:
- 50% of eligible drilling cost, or
- ₹675 crore per well,
whichever is lower.
This risk-sharing mechanism is significant because a single deepwater exploratory well may cost about US$125–150 million.
Common offshore infrastructure
Around ₹10,000 crore has been earmarked for common production and evacuation infrastructure.
Shared infrastructure can make smaller offshore discoveries commercially viable by reducing duplication and development costs.
Oil and Gas Manufacturing and Services Zones
The scheme provides ₹2,000 crore for establishing dedicated manufacturing and services zones.
The aim is to promote domestic production of specialised offshore equipment and services and reduce dependence on imports.
Why Offshore Exploration Matters for India
India remains heavily dependent on imported hydrocarbons.
At the same time, production from existing domestic oil and gas fields naturally declines by roughly 6–7% annually, making continuous exploration necessary.
India’s future hydrocarbon potential is increasingly concentrated in deepwater and frontier basins such as:
- Krishna–Godavari Basin
- Cauvery Basin
- Mahanadi Basin
- Andaman region
These areas require high-cost drilling, sophisticated seismic interpretation, subsea technology and advanced offshore infrastructure.
The scheme therefore seeks to overcome three major constraints:
- high exploration risk;
- high capital requirement;
- insufficient domestic offshore technology and infrastructure.
Targets and Strategic Significance
Subject to successful discoveries, Samudra Manthan seeks to increase India’s domestic oil and gas production from around 62 million tonnes of oil equivalent to 80 MMTOE annually.
It also aims to expand India’s hydrocarbon resource base from approximately 1.6 billion tonnes of oil equivalent to 2.2 billion TOE.
The government estimates that additional domestic production could potentially reduce crude-oil imports by nearly ₹1 lakh crore annually.
Its broader significance lies in:
- strengthening energy security;
- reducing import dependence;
- attracting private investment;
- developing deepwater technological capabilities;
- promoting Make in India;
- strengthening domestic offshore manufacturing;
- creating skilled employment;
- supporting Atmanirbhar Bharat.
The scheme is especially important because it shifts government policy from merely allocating exploration blocks towards actively sharing geological and commercial exploration risk
