---
title: "India Targets Deepwater Reserves With ₹84,084 Crore Samudra Manthan Initiative"
url: https://projectchintan.com/article/india-targets-deepwater-reserves-with-84-084-crore-samudra-manthan-initiative-tfhb9
publisher: Project Chintan
author: Project Chintan Newsroom
section: Business
published: 2026-08-01T16:03:13.000Z
modified: 2026-08-01T20:01:05.445Z
language: en-IN
---

# India Targets Deepwater Reserves With ₹84,084 Crore Samudra Manthan Initiative

The Union Cabinet approved a massive fiscal framework to incentivize offshore drilling and reduce reliance on aging oil fields. The plan seeks to mitigate financial risks for explorers while targeting a major increase in domestic hydrocarbon production.

## Key takeaways

- The Samudra Manthan scheme provides ₹84,084 crore through fiscal year 2030-31 to de-risk deepwater hydrocarbon exploration.
- The government will subsidize 50% of drilling costs for 60 deepwater wells, with a cap of ₹675 crore per well.
- Successful exploration could increase domestic oil and gas production to 80 MMTOE annually, up from the current 62 MMTOE.
- The initiative targets a ₹1 lakh crore reduction in annual crude oil import costs by tapping basins like Krishna-Godavari and Andaman.
- Specific funding includes ₹28,534 crore for seismic mapping and ₹10,000 crore for offshore infrastructure hubs.

## Strategic Shift to Deepwater Frontiers

The Union Cabinet approved a ₹84,084 crore financial package on July 31, 2026, to launch the National Offshore Exploration Scheme, titled Samudra Manthan. This initiative aims to address the high-risk nature of deepwater and ultra-deepwater drilling, where a single exploratory well can demand between $125 million and $150 million in capital. By sharing the financial burden, the government intends to attract private investment and expand the national hydrocarbon resource base from 1.6 billion tonnes of oil equivalent to 2.2 billion tonnes.

Energy security concerns drive this transition. India’s current oil and gas fields face a natural production decline of approximately 6-7% annually. To counter this, the Oil Ministry is shifting focus toward untapped potential in the Krishna-Godavari, Cauvery, Mahanadi, and Andaman basins. The program aims to boost annual domestic output from 62 million metric tonnes of oil equivalent (MMTOE) to 80 MMTOE by the 2030-31 fiscal year.

## Fiscal Allocation and Infrastructure Hubs

The ₹84,084 crore outlay is distributed across four distinct operational pillars to streamline the transition from exploration to commercial production:
- Drilling Operations: The largest share, ₹43,200 crore, is designated for drilling 60 deepwater exploration wells. The state will cover up to 50% of eligible costs, capped at ₹675 crore per well.
- Seismic Data Acquisition: ₹28,534 crore is allocated to map the geological properties and location of sub-seabed resources.
- Infrastructure Hubs: ₹10,000 crore will fund common offshore infrastructure to expedite the commercialization of new discoveries.
- Manufacturing Zones: ₹2,000 crore is earmarked for oil and gas service zones to localize the production of critical equipment.

## Corporate Strategy and Import Reduction

State-run entities are already moving into frontier areas. ONGC plans to drill 150 deepwater wells over seven years to access an estimated 5,600 MMTOE of potential. Meanwhile, Oil India Limited has identified natural gas at the Vijayapuram-2 and Vijayapuram-3 sites in the Andaman region. The government has also integrated these efforts into its Open Acreage Licensing Policy, offering 13 deep and ultra-deepwater blocks in round ten and five additional blocks in round eleven.

If successful, Samudra Manthan could reduce India’s annual crude oil import bill by nearly ₹1 lakh crore. This reduction is viewed as a vital step in stabilizing the national economy and lowering dependence on foreign energy markets.

Source: The Hindu — Economy

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Canonical: https://projectchintan.com/article/india-targets-deepwater-reserves-with-84-084-crore-samudra-manthan-initiative-tfhb9
Reported from: The Hindu — Economy