India launches Rs 84,084-crore Samudra Manthan scheme for deepwater oil exploration

The Indian government has introduced the Samudra Manthan scheme, a Rs 84,084-crore initiative designed to boost domestic oil and gas exploration and reduce reliance on imported hydrocarbons. The Ministry of Petroleum and Natural Gas issued operational guidelines for the program, which will run through FY2030-31, with FY2026-27 serving as a preparatory year.

To mitigate the high financial risks associated with offshore drilling, the government will provide support for 56 exploratory wells in deepwater areas (deeper than 400 metres) and four stratigraphic wells in ultra-deepwater areas (deeper than 1,500 metres). For exploratory wells, the government will cover up to 50 per cent of costs, capped at Rs 675 crore per well. Stratigraphic wells may receive up to 100 per cent funding, capped at Rs 1,350 crore per well, though these are restricted to state-owned companies or consortia led by them.

The scheme also allocates Rs 28,534 crore for offshore seismic surveys and data processing, Rs 10,000 crore for shared offshore infrastructure such as pipelines, and Rs 2,000 crore for manufacturing and services zones. Petroleum Secretary Neeraj Mittal described the program as “the most ambitious upstream oil and gas intervention undertaken in recent times,” noting it could add more than 600 million tonnes of oil equivalent to India’s reserves.