Samudra Manthan Scheme: India Approves ₹84,084 Crore Mission to Boost Offshore Energy Exploration and Strengthen Energy Security
India has launched an ambitious national initiative to accelerate offshore oil and gas exploration with the approval of the Samudra Manthan – National Offshore Exploration Scheme. Approved on July 31, 2026, the mission aims to increase domestic hydrocarbon production, reduce dependence on imported crude oil, and strengthen the country’s long-term energy security through large-scale investment in deepwater exploration and offshore infrastructure.
With a Phase-I investment of ₹84,084 crore up to FY 2030-31, the scheme marks a significant shift from policy reforms to mission-driven implementation. The government expects the programme to unlock vast offshore hydrocarbon resources while supporting the broader objectives of Atmanirbhar Bharat and Make in India.
Why Samudra Manthan Matters
India remains one of the world’s fastest-growing energy consumers, but a substantial share of its crude oil and natural gas demand is still met through imports. According to the government, the country’s annual crude oil import bill is around USD 144 billion (approximately ₹13 lakh crore), making domestic energy production a strategic priority.
Hydrocarbons continue to play a vital role in transportation, cooking fuel, petrochemicals, fertilizers and industrial manufacturing. While onshore exploration has expanded over the years, a large portion of India’s untapped energy reserves lies beneath offshore basins along the eastern and western coastlines.
Government estimates indicate these offshore regions extend to water depths of nearly 3,000 metres and contain more than 5,600 Million Metric Tonnes of Oil Equivalent (MMTOE) in hydrocarbon resources. Recent discoveries in the Cauvery, Mahanadi and Andaman basins have further strengthened expectations for future production.
Mission Targets and Expected Outcomes
The Samudra Manthan Scheme seeks to significantly expand India’s domestic resource base by encouraging advanced exploration and faster commercial development.
- Phase-I investment: ₹84,084 crore
- Implementation period: Up to FY 2030-31
- Expected reserve addition: More than 600 MMTOE
- Projected domestic production increase: From around 62 MMTOE to nearly 80 MMTOE annually
- Potential reduction in annual crude import bill: Nearly ₹1 lakh crore
Four Pillars of the Samudra Manthan Mission
The government has structured the programme around four major components designed to strengthen every stage of offshore exploration and production.
| Component | Allocation | Objective |
|---|---|---|
| Seismic Surveys & Data Processing | ₹28,534 crore | Expand 2D & 3D seismic surveys using AI-based interpretation and reprocess legacy datasets. |
| Deepwater & Ultra-Deepwater Drilling | ₹43,200 crore | Support drilling of 60 exploration wells with financial assistance for eligible projects. |
| Common Offshore Infrastructure | ₹10,000 crore | Develop shared production and evacuation facilities in key offshore basins. |
| Oil & Gas Manufacturing and Services Zone | ₹2,000 crore | Promote domestic manufacturing, engineering and offshore service capabilities. |
An additional ₹350 crore has been allocated for programme monitoring, digital systems, capacity building, stakeholder outreach and implementation support.
Addressing the Challenges of Offshore Exploration
Offshore hydrocarbon exploration is among the most expensive and technically demanding activities in the global energy industry. According to the government, the journey from awarding an exploration block to commercial production generally takes between five and ten years, requiring substantial investments and advanced technology.
Deepwater drilling presents an even greater challenge. The cost of drilling a single exploratory well can range between USD 125 million and USD 150 million, making exploration in frontier offshore regions financially risky for both public and private operators.
Another challenge is the natural decline in production from mature oil and gas fields. Existing fields typically witness an annual production decline of around 6 to 7 percent, requiring continuous exploration simply to maintain current output levels.
The Samudra Manthan Scheme introduces a risk-sharing framework designed to encourage wider participation from exploration and production companies while reducing financial barriers to deepwater projects.
Advanced Technology to Drive Exploration
A major focus of the mission is the use of modern exploration technologies to improve the identification of commercially viable hydrocarbon reserves.
The government plans to undertake extensive 2D and 3D seismic surveys across offshore basins while integrating Artificial Intelligence and advanced digital tools for faster interpretation of geological data.
Existing datasets stored in the National Data Repository will also be reprocessed using modern analytical technologies, allowing experts to reassess older exploration information that may reveal previously overlooked opportunities.
By combining improved seismic imaging with digital analysis, the government aims to shorten exploration timelines and improve the success rate of offshore drilling programmes.
Support for Deepwater Drilling Projects
The largest share of funding under Samudra Manthan has been earmarked for accelerating offshore drilling activities.
The scheme proposes financial assistance for the drilling of 60 deepwater and ultra-deepwater exploration wells. Eligible public and private operators can receive government support covering up to 50 percent of eligible drilling costs or ₹675 crore per well, whichever is lower.
The financial support is intended to reduce investment risks, encourage greater participation by exploration companies and speed up the discovery of commercially viable oil and gas reserves.
Building Shared Offshore Infrastructure
One of the long-standing challenges in offshore energy development has been the absence of common infrastructure for production and evacuation.
Many hydrocarbon discoveries have remained commercially unviable because companies were required to independently invest in expensive offshore production facilities, pipelines and transportation networks.
To address this issue, the government has allocated ₹10,000 crore to create shared offshore infrastructure, particularly in the Mahanadi and Kutch basins.
These common facilities are expected to reduce project costs, improve operational efficiency and help bring previously stranded discoveries into commercial production.
Strengthening Domestic Manufacturing and Industrial Capacity
Beyond exploration and drilling, the Samudra Manthan Scheme aims to build a comprehensive domestic ecosystem for India’s offshore energy sector. The government has allocated ₹2,000 crore to establish an Oil and Gas Manufacturing and Services Zone that will support indigenous manufacturing and specialised offshore services.
The proposed industrial hub will focus on manufacturing equipment, engineering support, repair facilities, logistics, warehousing and specialised offshore services. By expanding domestic capabilities, the initiative seeks to reduce dependence on imported equipment while strengthening India’s energy supply chain.
The scheme also aligns with the government’s broader Make in India and Atmanirbhar Bharat initiatives by encouraging local production and technology development across the offshore exploration value chain.
Digital Monitoring and Capacity Building
The programme includes several measures to improve implementation and transparency. Dedicated digital programme management systems will be introduced to monitor project execution, while investments will also be made in professional training, technology adoption and stakeholder engagement.
The government plans to promote collaboration between industry, research institutions and global technology partners to improve exploration efficiency and accelerate offshore development.
International outreach initiatives are also expected to attract investment and technical expertise for India’s offshore energy sector.
Expected Economic and Strategic Benefits
The government believes the mission could generate significant long-term benefits for India’s economy, subject to exploration success.
- Increase hydrocarbon reserves by more than 600 MMTOE.
- Expand India’s total resource base from around 1.6 billion tonnes of oil equivalent to nearly 2.2 billion tonnes.
- Raise annual domestic hydrocarbon production from approximately 62 MMTOE to nearly 80 MMTOE.
- Deliver incremental production of 10 to 15 MMTOE, with peak potential reaching 20 MMTOE.
- Reduce annual crude oil imports, potentially saving nearly ₹1 lakh crore in import costs.
- Boost foreign exchange savings through higher domestic production.
- Create employment opportunities across exploration, engineering, manufacturing and offshore services.
- Support GDP growth through increased investment in the energy sector.
Building on a Decade of Energy Sector Reforms
Samudra Manthan builds upon a series of structural reforms introduced in India’s hydrocarbon exploration sector over the past decade.
The government has opened more than 99 percent of previously restricted offshore areas, making over one million square kilometres of India’s Exclusive Economic Zone available for exploration.
Policy reforms including the Hydrocarbon Exploration and Licensing Policy (HELP), the Open Acreage Licensing Programme (OALP), Revenue Sharing Contracts and the Oilfields (Regulation and Development) Amendment Act, 2025 have modernised the exploration framework and improved the investment climate.
According to the government, nearly 81 percent of India’s active exploration acreage has been awarded since 2014. Under OALP, 172 exploration blocks covering nearly 3.8 lakh square kilometres have been allocated, attracting committed investments of more than USD 4.3 billion.
Mahanadi Basin Marks a Key Milestone
India’s offshore exploration programme reached a significant milestone on 25 July 2026 with the commencement of drilling at the MN-DWN18-1-HD appraisal well in the Mahanadi Offshore Basin.
According to the government, this is the first of four planned deepwater appraisal wells that will assess the commercial viability of one of India’s most promising offshore hydrocarbon regions. The drilling campaign will employ advanced deepwater technology to evaluate the basin’s resource potential and support future production plans.
The government described the start of drilling as an important step in expanding domestic hydrocarbon resources and strengthening India’s long-term energy resilience.
Towards a More Self-Reliant Energy Future
Samudra Manthan combines scientific exploration, advanced technology, shared infrastructure, financial support and domestic manufacturing into a single national mission aimed at transforming India’s offshore energy sector.
By promoting deepwater exploration, encouraging public and private investment and improving offshore infrastructure, the initiative seeks to reduce reliance on imported crude oil while expanding domestic production capacity.
The government believes the mission will help create a stronger offshore exploration ecosystem, generate employment across multiple industries, support industrial growth and reinforce India’s long-term energy security. As exploration activities progress over the coming years, the scheme is expected to play a central role in the country’s efforts to build a resilient and self-reliant energy future.
