The Union Cabinet has approved the ₹84,084-crore Samudra Manthan National Offshore Exploration Scheme, giving India’s search for oil and natural gas beneath its waters a major financial push. The scheme will run through financial year 2030-31 and is aimed at increasing domestic hydrocarbon production, attracting global energy companies and reducing the country’s dependence on imported crude oil and gas.
The programme comes at a time when energy security has become a bigger priority for India. The country imports a large share of the crude oil it consumes, leaving its economy exposed to international oil prices, geopolitical tensions and disruptions in global energy supplies. By expanding exploration within Indian waters, the government hopes to create a stronger domestic source of oil and gas over the coming years.
Samudra Manthan will focus heavily on deepwater and ultra-deepwater exploration, areas that are technically difficult and expensive to explore. The government plans to share part of the financial risk involved in drilling exploratory wells, making such projects more attractive to companies with the technology and expertise needed for offshore operations.
A key component of the scheme is financial assistance for deepwater drilling. The government plans to support eligible exploratory wells by covering up to 50% of their drilling costs, subject to specified limits. A deepwater well can require an investment running into hundreds of crores of rupees, depending on its location and geological complexity. Sharing some of that risk is expected to encourage companies to take up projects that may otherwise be considered commercially challenging.
The government is also putting significant money into seismic surveys, which are essential for identifying possible oil and gas deposits beneath the seabed. Better seismic data can give exploration companies a clearer picture of underground geological structures before they commit to expensive drilling campaigns.
The scheme covers the wider offshore exploration ecosystem rather than focusing only on drilling. It includes efforts to improve geological data, develop common offshore infrastructure and strengthen domestic capabilities in equipment and services required for oil and gas exploration. The broader objective is to make offshore exploration faster, more efficient and commercially viable.
India has already started moving in this direction. Nearly one million square kilometres of offshore areas that were earlier classified as restricted or “No-Go” zones have been opened for exploration. This has significantly expanded the acreage available to energy companies and created new opportunities in several offshore sedimentary basins.
The Krishna-Godavari, Mahanadi and Cauvery basins, along with the Andaman region, are among the areas expected to benefit from the renewed exploration push. These regions are considered to have significant hydrocarbon potential, although discovering commercially viable reserves will depend on the results of seismic surveys and drilling.
The government’s strategy is also beginning to move from planning to actual exploration. Oil and Natural Gas Corporation (ONGC) has already begun drilling its first deepwater exploratory well in the Mahanadi offshore basin under the Samudra Manthan programme. The start of drilling represents an important step as India attempts to tap resources located in more challenging offshore environments.
The government is also seeking greater participation from international energy companies. Deepwater exploration requires specialised drilling equipment, advanced geological technologies and significant technical expertise. Bringing experienced global players into Indian offshore projects could help accelerate exploration while giving domestic companies access to new technology and capabilities.
The initiative could also create opportunities for India’s oilfield services and manufacturing sectors. As offshore activity expands, demand is expected to increase for drilling equipment, subsea technology, engineering services, vessels and other specialised infrastructure. This could support the government’s broader Make in India and Atmanirbhar Bharat objectives in the energy sector.
The timing of the scheme is particularly important because India’s energy demand is expected to continue rising. Economic growth, industrial activity, transport and urbanisation are all likely to keep fuel consumption elevated. Greater domestic production could therefore help reduce the pressure created by rising imports.
However, the government’s ambitious targets will depend on actual exploration success. Offshore drilling is expensive, technically complex and carries considerable geological risk. Even when oil or gas is discovered, it can take years before a field is fully developed and begins commercial production.
The government is nevertheless betting that reducing exploration risks will encourage more companies to invest. The ₹84,084-crore allocation is intended to create the conditions needed for a sustained offshore exploration campaign rather than a short-term drilling programme.
Samudra Manthan therefore represents a major shift in India’s offshore oil and gas strategy. With government funding, expanded exploration acreage, new seismic data and a push for deepwater drilling, the Centre is looking to turn India’s offshore waters into a larger source of domestic energy.