The Union Cabinet has approved Samudra Manthan, the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum & Natural Gas. The outlay is ₹84,084 crore for Phase-I, which runs up to 31 March 2031 (FY 2030-31). The scheme offers risk-sharing support for deepwater exploration, to raise domestic oil and gas production and cut import dependence.
India is the world's third-largest consumer of crude oil, with an annual import bill of nearly USD 144 billion, about ₹13 lakh crore. Existing oil and gas fields decline naturally by around 6-7% every year, so continuous exploration and new discoveries are needed. Exploration is capital-intensive and slow: it typically takes 5-10 years from the award of a block to commercial production.
The government says India's future hydrocarbon potential lies largely in deepwater and ultra-deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi and Andaman. A single deepwater exploratory well costs approximately USD 125-150 million, which is why the government has opted for a risk-sharing approach to encourage sustained investment.
The scheme has four components:
A further ₹350 crore is earmarked for monitoring and support, including digital interventions, evaluation, human resources, outreach and media. Offshore exploration and infrastructure-led production together account for ₹55,200 crore.
The approval follows a series of reforms since 2014. More than 99% of earlier 'No-Go' areas have been removed, making nearly 99% of India's Exclusive Economic Zone (EEZ), over one million square kilometres, available for exploration. India has moved from Production Sharing Contracts to Revenue Sharing Contracts, which the government says simplifies the fiscal framework, improves transparency and reduces administrative intervention.
The Oilfields (Regulation and Development) Amendment Act, 2025 provides contractual stability, recognises integrated petroleum operations and strengthens dispute resolution. The Petroleum and Natural Gas Rules, 2025 operationalise these changes and streamline the administration of petroleum leases. The composition and mandate of the Empowered Committee of Secretaries have been standardised across all contract regimes, so that operators are on a level footing irrespective of when their contracts were signed. The performance parameters of ONGC and Oil India have also been reoriented towards exploration.
Subject to exploration success, the government says the scheme could raise domestic oil and gas production from around 62 million metric tonnes of oil equivalent (MMTOE) to 80 MMTOE annually, and expand the hydrocarbon resource base from 1.6 billion to 2.2 billion TOE. It aims to unlock over 600 MMTOE of offshore reserves, and the additional production could reduce crude oil imports by nearly ₹1 lakh crore annually.
The government also cites private investment, employment, indigenous offshore technology under Make in India, and offshore natural gas as a cleaner-burning bridge between heavier fossil fuels and renewables.
The challenges listed include multi-billion-dollar up-front investment, long lead times and a high risk of dry wells. High-pressure, low-temperature, ultra-deep environments need advanced technology, specialised rigs and complex subsea architecture. Seismic surveys, waste discharge, underwater noise and oil spills threaten marine ecosystems.
Basins often overlap disputed EEZs, maritime boundaries and defence-sensitive zones. Uncertainty over long-term demand as the world shifts to renewables also makes private investors hesitant to commit capital to decades-long projects.
With reference to the Samudra Manthan scheme, consider the following statements:
Which of the statements given above are correct?
Consider the following information:
| Component of Samudra Manthan | Outlay | |
|---|---|---|
| 1. | Offshore seismic data | ₹28,534 crore |
| 2. | Common offshore infrastructure hubs | ₹10,000 crore |
| 3. | Oil and Gas Manufacturing and Services Zones | ₹4,000 crore |
In how many of the above rows is the given information correctly matched?
Consider the following statements:
Statement-I: The government has opted for a risk-sharing approach to support deepwater exploration under Samudra Manthan.
Statement-II: A single deepwater exploratory well costs approximately USD 125-150 million.
Which one of the following is correct in respect of the above statements?
