Indian Economy News

Cabinet approves 'Samudra Manthan' (National Offshore Exploration Scheme) with an outlay of US$ 8.81 billion

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved 'Samudra Manthan', the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum & Natural Gas, with an approved outlay of Rs. 84,084 crore (US$ 8.81 billion) for implementation up to FY31. The scheme translates the Prime Minister's vision of unlocking India's offshore energy potential and aims to strengthen energy security, accelerate domestic exploration and production, promote technological leadership and support the vision of Viksit Bharat. It encompasses the entire offshore exploration value chain, including large-scale acquisition, processing and interpretation of high-quality seismic data, accelerated deepwater and ultra-deepwater exploratory drilling, scientific drilling in frontier basins, development of common offshore production and evacuation infrastructure, and the establishment of an integrated Oil & Gas Manufacturing and Services Zone. The scheme also includes provisions for digital programme management, capacity building, technology adoption, stakeholder engagement and international outreach to create an integrated ecosystem for offshore exploration.

The Samudra Manthan Scheme is expected to catalyse reserve accretion of over 600 Million Metric Tonnes of Oil Equivalent (MMTOE), substantially increase offshore exploration activity and enhance domestic oil and gas production. It is also expected to generate large-scale employment, strengthen indigenous manufacturing under Make in India and Atmanirbhar Bharat, and foster a globally competitive ecosystem for offshore technologies and services. The initiative is expected to stimulate significant investments across the exploration and production value chain, creating long-term opportunities for industry, innovation and economic growth. Building on reforms undertaken over the past decade including opening almost the entire offshore acreage for exploration, modernising the legislative and contractual framework, and strengthening the National Data Repository, the scheme is expected to usher in a new era of accelerated offshore exploration through strategic public investment, advanced technologies and world-class infrastructure, reinforcing India's long-term energy security.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.