Union Cabinet Approves Rs 84,084 Crore Samudra Manthan Offshore Exploration Scheme
The Union Cabinet has approved the Samudra Manthan – National Offshore Exploration Scheme with a financial outlay of Rs 84,084 crore. The initiative aims to enhance India’s domestic oil and gas reserves through deepwater exploration, high-quality seismic data collection, and shared offshore infrastructure through FY 2030-31.
What Happened
Following Prime Minister Narendra Modi’s announcement of the National Deep Water Exploration Mission on August 15, 2025, the Union Cabinet sanctioned the Rs 84,084 crore Samudra Manthan scheme. The initiative comes in response to India’s high import reliance and vulnerability to international energy supply disruptions. According to government details, the scheme aims to add more than 600 Million Metric Tons of Oil Equivalent (MMTOE) in reserves over its implementation period running through FY 2030-31.
Key Highlights
- Approval of the Rs 84,084 crore National Offshore Exploration Scheme through FY 2030-31.
- Targeting an addition of over 600 MMTOE in combined offshore oil and natural gas reserves.
- Large-scale acquisition, processing, and interpretation of high-quality seismic data across basins.
- Accelerated deepwater, ultra-deepwater, and frontier basin exploratory drilling.
- Creation of common offshore production and evacuation infrastructure, alongside an integrated Oil & Gas Manufacturing and Services Zone.
- Implementation of digital programme management, capacity building, technology adoption, and international outreach.
Why This Matters
India remains heavily dependent on global energy markets, with crude import reliance reaching 88.7% in FY 2025-26. Data from the Petroleum Planning & Analysis Cell (PPAC) shows domestic crude output fell 2.8% in FY 2025-26 to 28.71 million tonnes, and dropped another 4.2% year-on-year in April–May 2026. For natural gas, domestic production stood at 34,326 MMSCM against consumption of 68,542 MMSCM in FY 2025-26, according to PNGRB.
While India possesses adequate downstream refining capabilities—258.1 million tonnes per annum capacity compared to domestic petroleum product consumption of 243.2 million tonnes in FY 2025-26—it lacks sufficient upstream domestic feedstock. Sourav Mitra, Partner at Grant Thornton Bharat, notes that the International Energy Agency expects India to add about one million barrels per day of oil demand by 2030, raising total consumption to 6.66 million barrels per day. Industry experts including Rajnish Gupta of EY India and Sumit Ritolia of Kpler highlight that extensive seismic data and shared infrastructure can de-risk exploration in untouched deepwater frontier basins and help attract private investment, though import dependence is unlikely to decline immediately due to long appraisal-to-production timelines.
What to Watch Next
The primary challenge moving forward will be converting exploratory discoveries into commercially viable production. Experts emphasize that project success will depend on stage-gated funding, rigorous safety and environmental standards, and the speed at which fields transition from discovery to production. In the near term, India will continue relying on supply diversification, strategic reserves, and refinery flexibility to maintain energy security.
Frequently Asked Questions
What is the budget for the Samudra Manthan scheme?
The Union Cabinet has approved a total outlay of Rs 84,084 crore for the Samudra Manthan – National Offshore Exploration Scheme.
How much oil and gas reserves does the scheme aim to add?
The scheme is expected to catalyze an addition of over 600 Million Metric Tons of Oil Equivalent (MMTOE) in reserves by FY 2030-31.
What is India’s current crude oil import dependence?
According to the Petroleum Planning & Analysis Cell, India’s crude oil import dependence reached 88.7% during FY 2025-26.
Source: Based on reporting from Times of India and expert inputs from Grant Thornton Bharat, EY India, and Kpler.