Samudra Manthan: India Unveils ₹84,084 Crore Offshore Energy Mission
India has launched its most ambitious offshore hydrocarbon exploration drive yet, with the Union Cabinet, chaired by Prime Minister Narendra Modi, approving 'Samudra Manthan', the National Offshore Exploration Scheme, with an outlay of ₹84,084 crore through FY 2030-31. The Central Sector Scheme of the Ministry of Petroleum and Natural Gas aims to unlock India's offshore oil and gas reserves, strengthen energy security, reduce import dependence and build a globally competitive exploration ecosystem under the vision of Atmanirbhar Bharat.
The initiative comes as India, the world's third-largest crude oil consumer, imports nearly 85% of its crude oil and around half of its natural gas, resulting in an annual import bill of about USD 144 billion (₹13 lakh crore). With geopolitical tensions exposing the risks of relying heavily on overseas energy supplies and domestic oil fields witnessing a 6-7% annual production decline, the government is shifting towards exploration-led growth.
The scheme builds on a series of reforms introduced since 2014. More than 99% of India's Exclusive Economic Zone (EEZ) over one million sq km has been opened for exploration, while the Oilfields (Regulation and Development) Amendment Act, 2025, the Petroleum and Natural Gas Rules, 2025, and the transition to Revenue Sharing Contracts have simplified regulations and improved investor confidence. The performance of ONGC and Oil India has also been reoriented to prioritise exploration.
India's future hydrocarbon potential lies in the Krishna-Godavari, Cauvery, Mahanadi and Andaman deepwater basins, where exploration is technologically challenging and capital-intensive. With each exploratory well costing USD 125-150 million, the government will provide support of up to 50% of eligible drilling costs, capped at ₹675 crore per well, to reduce investment risk and encourage private participation.
The scheme allocates ₹28,534 crore for modern 2D and 3D seismic surveys, AI-enabled geological data processing and strengthening the National Data Repository. Another ₹43,200 crore has been earmarked to drill 60 deepwater exploration wells, while ₹10,000 crore will fund common offshore infrastructure and ₹2,000 crore will establish Oil and Gas Manufacturing and Services Zones to promote domestic manufacturing under Make in India.
Subject to successful discoveries, Samudra Manthan is expected to increase India's oil and gas production from 62 MMTOE to 80 MMTOE annually, expand the country's hydrocarbon resource base from 1.6 billion TOE to 2.2 billion TOE, and reduce crude oil imports by nearly ₹1 lakh crore every year. Beyond boosting domestic production, the mission is expected to accelerate investment in offshore engineering, advanced exploration technologies, ports, logistics and manufacturing, positioning India to build long-term capability in deepwater exploration while strengthening its energy resilience during the transition to cleaner energy sources.