The Union Cabinet on July 31, 2026 approved the Samudra Manthan National Offshore Exploration Scheme with an outlay of ₹84,084 crore through 2030-31, marking India’s largest-ever push to boost domestic oil and gas production from offshore fields. The Samudra Manthan scheme aims to add over 600 Million Metric Tonnes of Oil Equivalent (MMTOE) to India’s reserves and cut reliance on crude imports.
The scheme was cleared by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, under the Ministry of Petroleum and Natural Gas. It rests on four pillars: fresh seismic data acquisition across unexplored offshore basins, drilling of 60 deepwater exploration wells, development of common-user infrastructure hubs for offshore operators, and creation of dedicated manufacturing zones for rig and subsea equipment.
How Will Samudra Manthan Affect India’s Energy Imports?
India currently imports close to 85% of its crude oil requirement, a dependence that has kept the country exposed to global price and freight shocks, including recent Middle East supply disruptions. By targeting 600 MMTOE in additional reserves, the government expects the scheme to meaningfully lower the import bill over the next decade. The 60 planned deepwater wells will focus on frontier basins along India’s eastern and western offshore shelves, areas that have seen limited exploration due to high capital costs and technical risk, both of which the new outlay is designed to offset through viability gap funding and shared infrastructure.
What Do Industry Bodies and Analysts Say?
Oil and gas industry groups have broadly welcomed the outlay, noting that offshore exploration in India has lagged behind comparable basins in Brazil and West Africa due to inconsistent policy support across exploration cycles. Analysts tracking the upstream sector say the manufacturing-zone component is the most significant departure from earlier exploration policies, since it addresses India’s near-total dependence on imported rigs and subsea hardware — a bottleneck that has previously delayed project timelines by years. Petroleum ministry officials have described the scheme as central to India’s energy security strategy through FY2030-31.
Market and Trade Reaction
Shares of upstream exploration and oilfield services companies gained on the announcement, with investors pricing in a multi-year order pipeline for seismic surveys, rig deployment and subsea fabrication. Public sector explorers stand to be the largest beneficiaries of the seismic and drilling components, while private oilfield services firms are expected to compete for the manufacturing-zone contracts. The rupee showed no material reaction, as the scheme’s import-substitution effects will only materialise over several years rather than immediately.
What Happens Next?
The Ministry of Petroleum and Natural Gas is expected to notify implementation guidelines and bidding timelines for the 60 deepwater wells in the coming months, with seismic surveys likely to begin first given their shorter lead times. Industry will be watching for the specific incentive structure of the manufacturing zones, including whether they will offer customs duty concessions on imported components during the ramp-up phase. Progress against the 600 MMTOE reserve-addition target will be reviewed periodically through 2030-31.
Frequently Asked Questions
What is the Samudra Manthan scheme?
Samudra Manthan is a ₹84,084 crore National Offshore Exploration Scheme approved by India’s Union Cabinet on July 31, 2026, aimed at boosting domestic offshore oil and gas production through 2030-31.
How much oil and gas reserve does the scheme target?
The scheme targets adding over 600 Million Metric Tonnes of Oil Equivalent (MMTOE) to India’s reserves by expanding offshore exploration and drilling 60 deepwater wells.
Which ministry is implementing Samudra Manthan?
The scheme falls under India’s Ministry of Petroleum and Natural Gas and was cleared by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.
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