About 'Samudra Manthan', the ₹84,084 crore mission that aims to cut India's oil import bills
The scheme, approved by the Union Cabinet, is the government's biggest offshore oil and gas exploration mission so far.
- Aug 1, 2026,
- Updated Aug 1, 2026 10:51 AM IST
India spends nearly ₹13 lakh crore every year importing crude oil to meet its growing energy needs. Now, the Centre has approved an ambitious ₹84,084 crore offshore exploration programme called Samudra Manthan, hoping to find more oil and natural gas beneath the sea and reduce the country's dependence on imports.
The scheme, approved by the Union Cabinet, is the government's biggest offshore oil and gas exploration mission so far. It will run until March 2031 and focuses on discovering new hydrocarbon reserves in India's deepwater and ultra-deepwater regions.
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Why has the government launched Samudra Manthan?
India is the world's third-largest consumer of crude oil but imports a large share of the oil it uses. Global conflicts and supply disruptions have shown how vulnerable countries can become when they depend heavily on imports.
The government believes increasing domestic oil and gas production will strengthen India's energy security, reduce the import bill and make the country more self-reliant.
Why is offshore exploration important?
Many of India's existing oil and gas fields are getting depleted, with production naturally declining by around 6-7% every year.
At the same time, experts believe some of India's biggest untapped oil and gas reserves lie in offshore areas such as the Krishna-Godavari, Cauvery, Mahanadi and Andaman basins.
Finding these reserves, however, is expensive and risky. A single deepwater exploration well can cost $125-150 million, and commercial production often takes 5-10 years after exploration begins.
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What will Samudra Manthan do?
The scheme is designed to reduce the financial risk of offshore exploration and encourage more companies to invest in finding oil and gas.
The government will provide financial support of up to 50% of the drilling cost, subject to a maximum of ₹675 crore per exploration well.
Overall, the scheme has four major components:
- ₹28,534 crore to collect and process advanced offshore seismic data that can identify potential oil and gas reserves.
- ₹43,200 crore to drill 60 deepwater exploration wells, with government support for eligible drilling costs.
- ₹10,000 crore to build common offshore infrastructure that can help quickly commercialise future discoveries.
- ₹2,000 crore to develop oil and gas manufacturing and services zones to boost domestic production of equipment and services.
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What reforms have paved the way?
According to the Ministry of Petroleum and Natural Gas, the scheme builds on several reforms introduced over the past few years.
These include opening up nearly 99% of India's Exclusive Economic Zone (EEZ) for exploration, replacing the older production-sharing model with a revenue-sharing system, updating oilfield laws through the Oilfields (Regulation and Development) Amendment Act, 2025, introducing new Petroleum and Natural Gas Rules, and simplifying decision-making for exploration projects.
How could it benefit India?
If exploration is successful, the government expects Samudra Manthan to increase India's domestic oil and gas production from around 62 million metric tonnes of oil equivalent (MMTOE) to 80 MMTOE annually.
It also aims to expand India's estimated hydrocarbon resource base from 1.6 billion tonnes of oil equivalent (TOE) to 2.2 billion TOE.
The government estimates that the additional domestic production could help reduce crude oil imports by nearly ₹1 lakh crore every year, while strengthening India's long-term energy security and building domestic capabilities in deepwater oil and gas exploration.
India spends nearly ₹13 lakh crore every year importing crude oil to meet its growing energy needs. Now, the Centre has approved an ambitious ₹84,084 crore offshore exploration programme called Samudra Manthan, hoping to find more oil and natural gas beneath the sea and reduce the country's dependence on imports.
The scheme, approved by the Union Cabinet, is the government's biggest offshore oil and gas exploration mission so far. It will run until March 2031 and focuses on discovering new hydrocarbon reserves in India's deepwater and ultra-deepwater regions.
SEE WHY | BT Explainer | If ethanol costs ₹71/litre, why is the government blending it with petrol?
Why has the government launched Samudra Manthan?
India is the world's third-largest consumer of crude oil but imports a large share of the oil it uses. Global conflicts and supply disruptions have shown how vulnerable countries can become when they depend heavily on imports.
The government believes increasing domestic oil and gas production will strengthen India's energy security, reduce the import bill and make the country more self-reliant.
Why is offshore exploration important?
Many of India's existing oil and gas fields are getting depleted, with production naturally declining by around 6-7% every year.
At the same time, experts believe some of India's biggest untapped oil and gas reserves lie in offshore areas such as the Krishna-Godavari, Cauvery, Mahanadi and Andaman basins.
Finding these reserves, however, is expensive and risky. A single deepwater exploration well can cost $125-150 million, and commercial production often takes 5-10 years after exploration begins.
DO CHECKOUT | LPG rate changes from August 1: Commercial LPG cylinder rates slashed by around ₹200, 14-kg cylinder rates unchanged
What will Samudra Manthan do?
The scheme is designed to reduce the financial risk of offshore exploration and encourage more companies to invest in finding oil and gas.
The government will provide financial support of up to 50% of the drilling cost, subject to a maximum of ₹675 crore per exploration well.
Overall, the scheme has four major components:
- ₹28,534 crore to collect and process advanced offshore seismic data that can identify potential oil and gas reserves.
- ₹43,200 crore to drill 60 deepwater exploration wells, with government support for eligible drilling costs.
- ₹10,000 crore to build common offshore infrastructure that can help quickly commercialise future discoveries.
- ₹2,000 crore to develop oil and gas manufacturing and services zones to boost domestic production of equipment and services.
MUST READ | Petrol, diesel prices today, August 1: Check latest rates in Delhi, Mumbai, Chennai, Kolkata & more
What reforms have paved the way?
According to the Ministry of Petroleum and Natural Gas, the scheme builds on several reforms introduced over the past few years.
These include opening up nearly 99% of India's Exclusive Economic Zone (EEZ) for exploration, replacing the older production-sharing model with a revenue-sharing system, updating oilfield laws through the Oilfields (Regulation and Development) Amendment Act, 2025, introducing new Petroleum and Natural Gas Rules, and simplifying decision-making for exploration projects.
How could it benefit India?
If exploration is successful, the government expects Samudra Manthan to increase India's domestic oil and gas production from around 62 million metric tonnes of oil equivalent (MMTOE) to 80 MMTOE annually.
It also aims to expand India's estimated hydrocarbon resource base from 1.6 billion tonnes of oil equivalent (TOE) to 2.2 billion TOE.
The government estimates that the additional domestic production could help reduce crude oil imports by nearly ₹1 lakh crore every year, while strengthening India's long-term energy security and building domestic capabilities in deepwater oil and gas exploration.