New Delhi, India / RankWire.AI / – The Union Cabinet, led by Prime Minister Narendra Modi, gave the green light on Friday to a major national project designed to speed up hydrocarbon discovery in Indian ocean basins. Government officials from the Press Information Bureau confirmed that the Cabinet approved a Rs 84,084 crore offshore oil and gas exploration plan, called the Samudra Manthan national program. This scheme, overseen by the Ministry of Petroleum and Natural Gas, will run through the financial year 2030 to 2031. The multi-billion-rupee initiative aims to expand deepwater exploration, improve energy security, and unlock untapped oil and natural gas reserves within India’s exclusive economic zone.
The budget allocates funds across four main program pillars to reshape the upstream petroleum sector. As per official statements from the Prime Minister’s Office, Rs 28,534 crore is dedicated to offshore seismic data collection, processing, and high-resolution analysis. This includes Rs 12,000 crore for basin-wide 2D seismic surveys, Rs 12,534 crore for 3D seismic mapping, and Rs 4,000 crore for modernizing the National Data Repository with artificial intelligence tools. These allocations aim to create detailed maps of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coasts.
The largest share of funding, Rs 55,200 crore, is for direct exploration activities and infrastructure. Rs 43,200 crore will support drilling 60 deepwater and ultra-deepwater wells across targeted offshore blocks. Under a risk-sharing model, the government will cover up to 50 percent of eligible drilling costs, with a cap of Rs 675 crore per well. An additional Rs 10,000 crore is allocated for offshore production and evacuation infrastructure. Rs 2,000 crore will fund specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Exploration Plan
Official estimates indicate that the scheme is expected to add significant reserves within the next decade. The government anticipates discovering more than 600 million metric tonnes of oil equivalent through targeted exploration. The initiative aims to increase annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes. Overall, hydrocarbon resources could grow from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in domestic energy output could reduce crude oil imports by about Rs 1 lakh crore annually.
Union Minister Ashwini Vaishnaw told reporters in New Delhi that the program tackles serious geopolitical risks affecting global crude supply. With crude import dependence reaching 88.7 percent in fiscal year 2025–2026, Samudra Manthan aims to create long-term energy independence. Deepwater exploration in areas like Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore involves high investments, ranging from 100 million to 250 million dollars per well. The public risk-sharing scheme encourages private and public upstream operators to commit long-term capital for challenging maritime geological formations.
Deepwater Drilling Support Offers Up to 675 Crore Per Well
Shared offshore infrastructure development is vital for the program. It aims to improve the economics of smaller hydrocarbon discoveries. The Ministry of Petroleum and Natural Gas plans to build common processing platforms, subsea pipelines, and evacuation facilities. These will lower costs for developing commercial fields. Rs 350 crore is allocated for digital project management, monitoring, workforce training, and international technical cooperation. These measures seek to foster a robust industrial ecosystem for offshore engineering, underwater robotics, and deepwater production technologies.
Samudra Manthan builds on ten years of policy reforms in upstream oil, including open acreage licensing and unified contracts. By extending financial support through 2031, the government aims to encourage long-term industrial partnerships, create high-skilled jobs, and promote domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling projects progress, the scheme provides a clear pathway toward reducing imports, boosting economic resilience, and achieving energy independence for India.