The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to the Samudra Manthan, a national offshore exploration scheme under the purview of the Ministry of Petroleum & Natural Gas. This Central Sector Scheme has been allocated a significant budget of Rs 84,084 crore for implementation through the financial year ending in March 2031.

Importance of Energy Security in India

India ranks as the world’s third-largest consumer of crude oil, accumulating an annual import expenditure nearing USD 144 billion, which is approximately Rs 13 lakh crore. Recent geopolitical changes have underscored the critical need for secure and consistent access to energy resources for the nation’s growing economy. In response to these challenges, the Indian government has initiated various reforms to improve the ecosystem for hydrocarbon exploration and production.

Since 2014, a substantial overhaul has taken place to facilitate exploration activities. Significantly, more than ninety-nine per cent of previously designated “No-Go” zones have been lifted, thereby opening up over one million square kilometres of India’s Exclusive Economic Zone for exploration. The regulatory framework has transitioned from Production Sharing Contracts to Revenue Sharing Contracts, enhancing transparency and minimising bureaucratic interference.

Additionally, the Oilfields (Regulation and Development) Amendment Act, enacted in 2025, has modernised the legal landscape governing the sector by establishing contractual stability and enhancing dispute resolution processes. The operationalisation of the Petroleum and Natural Gas Rules, 2025, supports these reforms by streamlining business processes and improving efficiency in regulatory practices.

Details of the Samudra Manthan Scheme

The Samudra Manthan initiative marks a shift from policy reform to actionable implementation. The scheme comprises an integrated approach designed to expedite offshore hydrocarbon exploration and production. The major components of the plan include the acquisition and processing of cutting-edge seismic data with an allocation of Rs 28,534 crore, and the drilling of sixty deepwater exploration wells supported by Rs 43,200 crore. The government will finance up to fifty per cent of the eligible drilling costs, or Rs 675 crore per well, depending on which amount is lower.

Furthermore, the development of common offshore infrastructure hubs is planned, supported by an investment of Rs 10,000 crore to facilitate the commercialisation of new discoveries. The establishment of Oil and Gas Manufacturing and Services Zones, with an additional outlay of Rs 2,000 crore, aims to bolster domestic manufacturing and localization of essential equipment and services.

With successful exploration efforts, the Samudra Manthan Scheme aspires to boost India’s domestic oil and gas production from approximately sixty-two million metric tonnes of oil equivalent (MMTOE) to eighty MMTOE annually. Concurrently, it aims to expand the national hydrocarbon resource base from 1.6 billion tonnes of Oil Equivalent (TOE) to 2.2 billion TOE. This additional production has the potential to decrease crude oil imports by nearly Rs 1 lakh crore each year, thereby strengthening India’s energy security and diminishing reliance on foreign sources.

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