The Union Cabinet has approved an ambitious ₹84,084 crore National Offshore Exploration Scheme, named “Samudra Manthan”, aimed at accelerating India's exploration of offshore oil and natural gas resources. The Central Sector scheme will be implemented through the financial year 2030–31 and is being positioned as a major step toward strengthening India's long-term energy security.
The approval was announced by the Press Information Bureau on August 1, 2026. According to the government, the programme is designed to move India's offshore exploration strategy from policy reform into mission-mode implementation, with a strong focus on deepwater and ultra-deepwater areas.
India remains one of the world's largest consumers of crude oil and depends significantly on imports to meet its energy requirements. The government says expanding domestic oil and gas production can help reduce exposure to international price fluctuations and geopolitical disruptions while strengthening the country's energy resilience.
Under Samudra Manthan, the government plans to provide financial support of up to 50% of eligible drilling costs for deep-water exploration wells, subject to a ceiling of ₹675 crore per well. The objective is to reduce the financial risks associated with deep-water exploration and encourage greater participation from exploration and production companies.
The scheme has several major components. Around ₹28,534 crore has been allocated for acquiring and processing modern offshore seismic data. This includes ₹12,000 crore for basin-wide 2D seismic surveys, ₹12,534 crore for 3D seismic data and other exploration techniques, and ₹4,000 crore for re-processing National Data Repository information and implementing AI-based tools.
Another ₹43,200 crore has been allocated for accelerating offshore exploration, including the drilling of 60 deepwater exploration wells. These wells will help assess India's offshore hydrocarbon potential and identify areas that could eventually support commercial production.
The government has also allocated ₹10,000 crore for common offshore infrastructure hubs. Shared infrastructure is expected to make it easier and faster to commercialize discoveries once commercially viable resources are identified. A further ₹2,000 crore will support the development of oil and gas manufacturing and services zones aimed at strengthening domestic capabilities and encouraging localization of equipment and services.
The exploration programmed will focus on India's major offshore basins, including the Krishna-Godavari, Cauvery and Mahanadi basins, as well as the Andaman region. These areas are considered important parts of India's future offshore hydrocarbon potential.
Deepwater exploration is technically challenging and requires significant capital investment. According to the government's assessment, a single deep-water exploratory well can cost approximately US$125 million to US$150 million. The financial support under Samudra Manthan is therefore intended to share part of the exploration risk and encourage companies to undertake projects that might otherwise be considered too expensive or uncertain.
The government has also highlighted changes made to India's exploration policy over recent years. More than 99% of areas previously classified as “No-Go” areas have been opened for exploration, making more than one million square kilometers of India's Exclusive Economic Zone available for exploration, according to the PIB.
The scheme comes as India seeks to increase domestic energy production while managing growing demand. Existing oil and gas fields naturally experience production declines over time, making continuous exploration and new discoveries important for maintaining domestic output.
If exploration is successful, the government expects the programmed to help increase India's domestic oil and gas production from around 62 million tones of oil equivalent annually to approximately 80 million tones of oil equivalent. It also aims to expand the country's hydrocarbon resource base from around 1.6 billion tonnes of oil equivalent to 2.2 billion tonnes of oil equivalent.
The government estimates that additional domestic production could eventually reduce India's crude oil import bill by nearly ₹1 lakh crore annually. However, these potential benefits depend on successful exploration, commercially viable discoveries and the development of the necessary production infrastructure.
The programmed could also have wider economic implications. Increased exploration activity can generate demand for drilling services, offshore engineering, seismic surveys, specialized equipment, logistics and other supporting industries. The proposed manufacturing and services zones are intended to encourage more of these capabilities to develop within India.
At the same time, offshore exploration involves technological, financial and environmental challenges. Deepwater drilling requires sophisticated equipment, highly trained personnel and strict operational standards. Any future commercial development will also need to comply with environmental and regulatory requirements governing India's offshore areas.
For the energy sector, Samudra Manthan represents a significant increase in the government's commitment to offshore exploration. The combination of seismic data, financial risk-sharing, deepwater drilling and shared infrastructure is designed to create a more complete ecosystem rather than focusing only on individual exploration wells.
The success of the programmed will ultimately depend on what lies beneath India's offshore waters. Exploration does not guarantee commercially recoverable oil or gas, but the government believes that greater investment and improved technology can increase the chances of discovering and developing new resources.
With an approved outlay of ₹84,084 crore extending through March 2031, Samudra Manthan is set to become a major part of India's long-term energy strategy. The initiative reflects the country's effort to expand domestic resources, attract investment and reduce its dependence on imported energy while building stronger capabilities in deepwater exploration.
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