Context:
Recently, the Union Cabinet approved Samudra Manthan – the National Offshore Exploration Scheme on 31 July 2026 with a Phase-I outlay of ₹84,084 crore till FY 2030–31. The scheme aims to accelerate offshore oil and gas exploration, strengthen India's energy security, and reduce dependence on imported crude oil.
About Samudra Manthan scheme:
Samudra Manthan is a flagship initiative of the Government of India to unlock the country's vast offshore hydrocarbon resources. It focuses on increasing domestic production of crude oil and natural gas through modern technology, better geological data, shared infrastructure, and greater participation of both public and private companies. The scheme also supports the vision of Atmanirbhar Bharat and Make in India.
Need for the Scheme:
India is the third-largest consumer of crude oil in the world and imports a major share of its energy requirements. The annual crude oil import bill is around USD 144 billion (₹13 lakh crore). India's offshore basins are estimated to hold over 5,600 MMTOE of hydrocarbon resources. Therefore, expanding offshore exploration is essential to improve energy security and reduce import dependence.
Major Components:
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- Seismic Data Acquisition: ₹28,534 crore has been allocated for 2D and 3D seismic surveys, AI-based data analysis, and reprocessing of old geological data to identify new hydrocarbon reserves.
- Offshore Exploration: ₹43,200 crore will support drilling of 60 deepwater and ultra-deepwater wells. Financial assistance of up to 50% of drilling cost or ₹675 crore per well will encourage exploration by public and private companies.
- Common Offshore Infrastructure: ₹10,000 crore will be used to develop shared production and transportation facilities in offshore basins such as Mahanadi and Kutch.
- Manufacturing and Services Zone: ₹2,000 crore has been allocated to establish an Oil and Gas Manufacturing and Services Zone to promote domestic manufacturing and strengthen the Make in India initiative.
- Seismic Data Acquisition: ₹28,534 crore has been allocated for 2D and 3D seismic surveys, AI-based data analysis, and reprocessing of old geological data to identify new hydrocarbon reserves.
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Expected Benefits:
The scheme aims to add over 600 MMTOE of hydrocarbon reserves and increase domestic production from 62 MMTOE to about 80 MMTOE annually. It is expected to reduce crude oil imports by nearly ₹1 lakh crore every year, generate employment, attract investment, and build a globally competitive offshore energy sector.
Conclusion:
Samudra Manthan is a significant step towards energy security, self-reliance, and sustainable economic growth. By promoting offshore exploration, improving infrastructure, and strengthening domestic capabilities, the scheme will play a key role in achieving the goals of Atmanirbhar Bharat and reducing India's dependence on imported energy.
