Cabinet Approves Massive Offshore Exploration Programme
The Union Cabinet, on 31 July 2026, cleared an outlay of ₹84,084 crore for the National Offshore Exploration Scheme (Samudra Manthan) under the Union Petroleum Ministry. The funds will be spent up to the fiscal year 2030‑31 to accelerate offshore hydrocarbon discovery and reduce India's dependence on imports.
Key Developments
- Allocation of ₹43,200 crore for drilling deepwater exploration wells – up to 60 wells, with the government bearing up to 50% of eligible costs (max ₹675 crore per well).
- Provision of ₹28,534 crore for offshore data acquisition to cut geological uncertainty.
- Investment of ₹10,000 crore to develop common offshore infrastructure hubs that will enable commercialisation of any discoveries.
- Creation of ₹2,000 crore for oil and gas manufacturing and services zones to foster localisation of critical equipment.
Important Facts
The scheme targets the addition of more than 600 MMTOE of reserves. It aims to stimulate private investment by reducing exploration risk and creating a robust value chain from seismic surveys to production. The first deep‑water well under the programme has already been started by ONGC in the Mahanadi basin.
Exam Relevance
Understanding this scheme is vital for GS‑3 (Economy) and GS‑2 (Poli