Cabinet okays 'Samudra Manthan' scheme with Rs 84,084 cr outlay

The Union Cabinet approved 'Samudra Manthan,' the National Offshore Exploration Scheme, with a Rs 84,084 crore outlay. It aims to boost domestic oil and gas production and reduce India's massive crude oil import bill, strengthening energy security.

The Union Cabinet, chaired by Prime Minister Narendra Modi on Friday, approved "Samudra Manthan", the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum & Natural Gas carrying an approved outlay of Rs 84,084 crore for implementation through FY 2030-31.

India's Push for Energy Security

According to an official statement by the Ministry of Petroleum & Natural Gas, India is the world's third-largest consumer of crude oil, with an annual import bill of nearly USD 144 billion (approximately Rs 13 lakh crore). As recent geopolitical developments have demonstrated, secure and uninterrupted access to energy resources is of strategic importance for a rapidly growing economy.

A Foundation of Structural Reforms

Since 2014, the Government has undertaken a series of structural reforms over the past few years to create an enabling ecosystem for hydrocarbon exploration and production. More than 99 per cent of the earlier "No-Go" areas have been removed, making over one million square kilometres of India's Exclusive Economic Zone available for exploration for the first time.

India transitioned from Production Sharing Contracts to Revenue Sharing Contracts, simplifying the fiscal framework and improving transparency while reducing administrative intervention.

The Oilfields (Regulation and Development) Amendment Act, 2025 modernised the legal framework governing the sector by providing contractual stability, recognising integrated petroleum operations, strengthening dispute resolution mechanisms, and establishing a contemporary regulatory architecture.

The Petroleum and Natural Gas Rules, 2025 operationalised these reforms by promoting ease of doing business, improving regulatory efficiency, and streamlining the administration of petroleum leases.

The Government has also standardised the composition and mandate of the Empowered Committee of Secretaries across all contract regimes, ensuring consistency and a level playing field for all operators, irrespective of when their contracts were signed, the release said.

The performance parameters of ONGC and Oil India have been reoriented to place greater emphasis on exploration activities, reinforcing the Government's commitment to expanding India's domestic hydrocarbon resource base.

'Samudra Manthan': The National Offshore Exploration Scheme

The National Offshore Exploration Scheme "Samudra Manthan" marks the transition from policy reforms to mission-mode implementation. Approved as a Central Sector Scheme with a Phase-I outlay of Rs 84,084 crore up to 31 March 2031, the scheme adopts an integrated approach to accelerate offshore hydrocarbon exploration and production.

Scheme Components and Outlay

The scheme comprises four key components. Firstly, acquisition and processing of modern offshore seismic data with an outlay of Rs 28,534 crore. Secondly, drilling of 60 deepwater exploration wells with an allocation of Rs 43,200 crore, including Government support of up to 50% of eligible drilling cost or Rs 675 crore per well, whichever is lower. Also, development of common offshore infrastructure hubs with an outlay of Rs 10,000 crore to facilitate commercialisation of discoveries; and establishment of Oil and Gas Manufacturing and Services Zones with an outlay of Rs 2,000 crore to promote domestic manufacturing and localisation of critical equipment and services.

Aims and Projected Benefits

Subject to exploration success, the National Offshore Exploration Scheme - Samudra Manthan - aims to increase India's domestic oil and gas production from around 62 million metric tonnes of oil equivalent (MMTOE) to 80 MMTOE annually and expand the country's hydrocarbon resource base from 1.6 billion tonnes of Oil Equivalent (TOE) to 2.2 billion TOE. The additional production has the potential to reduce crude oil imports by nearly Rs 1 lakh crore annually, strengthening India's energy security and reducing import dependence. (ANI)

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