Cabinet Approves Rs 84,084 Crore ‘Samudra Manthan’ Scheme to Boost Offshore Oil and Gas Exploration

The Union Cabinet has approved the Samudra Manthan National Offshore Exploration Scheme with an outlay of Rs 84,084 crore, aimed at accelerating offshore oil and gas exploration and strengthening India’s energy security amid the ongoing Middle East crisis.

What is the Samudra Manthan scheme and its timeline?

The scheme, cleared by the Cabinet chaired by Prime Minister Narendra Modi, will be implemented as a Central Sector Scheme under the Ministry of Petroleum and Natural Gas up to fiscal 2030-31. Union Minister Ashwini Vaishnaw said the initiative is designed to substantially increase exploration activity within India’s Exclusive Economic Zone, where significant hydrocarbon reserves remain untapped, with the goal of boosting domestic oil and gas production and reducing import dependence.

What does the scheme cover across the exploration value chain?

According to the Cabinet release, the scheme spans the entire offshore exploration value chain, including large-scale seismic data acquisition, accelerated deepwater and ultra-deepwater exploratory drilling, scientific drilling in frontier basins, development of common offshore production and evacuation infrastructure, and establishment of an integrated Oil and Gas Manufacturing and Services Zone. Vaishnaw said offshore seismic data acquisition forms the first major component, helping identify areas with higher probability of reserves beneath the seabed before drilling begins. The scheme also includes provisions for digital programme management, capacity building, technology adoption, stakeholder engagement and international outreach.

What financial support will the government provide?

The government will partly fund the high cost of exploring deepwater areas, drilling exploratory wells and building common infrastructure needed to bring new discoveries into production, addressing one of the key barriers that has historically limited private investment in India’s offshore exploration sector.

What outcomes is the scheme expected to deliver?

Samudra Manthan is expected to catalyse reserve accretion of over 600 million metric tonnes of oil equivalent, substantially increase offshore exploration activity, promote higher domestic oil and gas production, and generate large-scale employment. The scheme is also expected to strengthen indigenous manufacturing under Make in India and Atmanirbhar Bharat, and foster a globally competitive ecosystem for offshore technologies and services.

How does this align with India’s broader energy vision?

The scheme translates Prime Minister Modi’s vision, articulated from the Red Fort on Independence Day 2025, of a modern-day Samudra Manthan to unlock India’s offshore energy potential. Officials described it as a landmark step toward strengthening energy security, accelerating exploration and production, promoting technological leadership, and advancing the broader vision of Viksit Bharat.