Cabinet approves ₹84,084-crore ‘Samudra Manthan’ scheme for offshore energy exploration

India's Union Cabinet has greenlit 'Samudra Manthan,' a significant national offshore exploration scheme valued at ₹84,084 crore, aimed at bolstering the country's declining domestic oil and gas reserves. The initiative comes at a critical juncture, as India's crude oil import dependency has surged from 78.5% in 2014-15 to 88.7% in 2025-26.

Named after the ancient epic churning of the ocean, the scheme aligns with Prime Minister Narendra Modi's vision to unlock India's vast offshore energy potential. The official statement highlighted the scheme as a landmark step towards enhancing energy security, accelerating exploration and production, fostering technological leadership, and advancing the goal of a developed India ('Viksit Bharat').

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It marks a landmark step towards strengthening India’s energy security, accelerating domestic exploration and production, promoting technological leadership, and advancing the vision of Viksit Bharat.

The first phase, running until March 31, 2031, includes four key components. These involve acquiring modern offshore seismic data (₹28,534 crore), drilling 60 deepwater exploration wells with government support (₹43,200 crore), developing common offshore infrastructure hubs for commercializing discoveries (₹10,000 crore), and establishing oil and gas manufacturing zones to promote local production of critical equipment and services (₹2,000 crore).

Subject to successful exploration, 'Samudra Manthan' targets an increase in annual domestic oil and gas production from approximately 62 million metric tonnes of oil equivalent (MMTOE) to 80 MMTOE. This expansion could potentially reduce annual crude oil imports by nearly ₹1 lakh crore, significantly strengthening India's energy security. The policy addresses the decline in production from mature domestic fields, as India, despite being the world's third-largest oil consumer, ranks around 20th in global production.

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The additional production has the potential to reduce crude oil imports by nearly ₹1 lakh crore annually, strengthening India’s energy security and reducing import dependence.