New Delhi, India / RankWire.AI / – The Union Cabinet, led by Prime Minister Narendra Modi, sanctioned a historic national effort on Friday aimed at boosting hydrocarbon exploration throughout Indian ocean regions. The official statements issued by the Press Information Bureau confirmed that the Cabinet approved a Rs 84,084 crore offshore oil and gas exploration plan, named the Samudra Manthan program. Managed centrally by the Ministry of Petroleum and Natural Gas, this scheme will run through the financial year 2030 to 2031. The extensive investment is designed to intensify deepwater exploration, bolster India’s energy security, and unlock hidden oil and natural gas reserves within the country’s exclusive economic zone.
The financial plan directs funds toward four main pillars, transforming the upstream petroleum sector. Official disclosures from the Prime Minister’s Office reveal that 28,534 crore rupees have been allocated specifically for offshore seismic data collection, analysis, and high-resolution interpretation. This component includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic imaging, and 4,000 crore rupees to upgrade the National Data Repository with artificial intelligence technology. This strategic distribution of funds ensures thorough mapping of unexplored frontier basins and previously restricted maritime zones across India’s eastern and western coasts.
The largest portion of the approved budget, totaling 55,200 crore rupees, is dedicated to exploratory drilling and infrastructure projects. Of this, 43,200 crore rupees are allocated for drilling 60 deepwater and ultra-deepwater wells in designated offshore blocks. Under the risk-sharing scheme, government support will cover up to 50 percent of qualified exploration drilling expenses, with a maximum cap of 675 crore rupees per well. Additionally, 10,000 crore rupees are set aside for offshore production and evacuation infrastructure, while 2,000 crore rupees will fund the development of specialized manufacturing zones for oilfield equipment and technical services.
Cabinet Endorses Rs 84,084 Crore Offshore Hydrocarbon Exploration Program
Official estimates suggest that the Rs 84,084 crore offshore exploration initiative will significantly boost India’s hydrocarbon reserves over the next decade. The government anticipates discovering more than 600 million metric tonnes of oil equivalent through targeted exploration efforts. The plan aims to increase annual domestic production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, expanding the country’s total hydrocarbon resources from 1.6 billion to 2.2 billion tonnes of oil equivalent. This surge in domestic energy output is projected to reduce crude oil imports by nearly 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that the initiative addresses serious geopolitical challenges threatening global crude oil supplies. With India’s reliance on crude imports reaching 88.7 percent in fiscal year 2025 to 2026, the government established Samudra Manthan to foster long-term energy independence. High-stakes deepwater drilling in regions like Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore demands substantial capital, with costs per well ranging from 100 million to 250 million dollars. The risk-sharing approach is designed to motivate private and public sector operators to commit long-term investments in challenging maritime geological formations.
Deepwater Exploration Incentives of Up to 675 Crore Rupees Per Well
A core aspect of the program is shared offshore infrastructure development, aimed at making smaller hydrocarbon discoveries more commercially viable. The Ministry of Petroleum and Natural Gas plans to create common processing platforms, subsea pipelines, and evacuation facilities to reduce capital costs for field development. An allocation of 350 crore rupees is dedicated to digital program management, monitoring, workforce training, and international technical cooperation. These efforts are designed to promote an integrated industrial ecosystem capable of supporting advanced offshore marine engineering, underwater robotics, and deepwater production technology.
The rollout of the Samudra Manthan program extends over a decade of policy reforms in upstream oil exploration, including open acreage licensing and unified contractual frameworks. By providing financial backing until 2031, the government aims to forge enduring industrial alliances, create high-skilled jobs, and promote local manufacturing in line with the Make in India initiative. As offshore surveys and deepwater drilling contracts proceed, this structured approach is set to reduce import dependence, bolster economic resilience, and secure long-term energy sovereignty for India.