The Union Cabinet has approved the ₹84,084 crore Samudra Manthan National Offshore Exploration Scheme to strengthen India's domestic oil and gas production capabilities. The Central Sector scheme will be implemented until FY31 and focuses on accelerating exploration activities across India's Exclusive Economic Zone (EEZ).
The initiative forms part of the government's broader strategy to improve energy security and reduce dependence on imported hydrocarbons. The approval follows Prime Minister Narendra Modi's announcement of the National Deep Water Exploration Mission during his Independence Day address in 2025.
The Samudra Manthan scheme includes investments across the offshore exploration value chain, ranging from data acquisition to production infrastructure. Key components include large-scale seismic data acquisition and interpretation, deep-water and ultra-deep-water exploratory drilling, scientific drilling in frontier basins and technology adoption initiatives.
The programme also covers digital project management, capacity building and international collaboration to strengthen offshore exploration capabilities. The government aims to create an integrated ecosystem that supports exploration, production and supporting industries.
A total of ₹10,000 crore has been allocated for developing common production and evacuation infrastructure in offshore basins. This infrastructure is expected to support commercially viable development of discoveries in areas such as the Mahanadi and Kutch basins, where high infrastructure costs have delayed production.
The scheme also earmarks ₹2,000 crore for establishing an Oil and Gas Manufacturing and Services Zone. The proposed zone is intended to boost domestic manufacturing, engineering, repair and warehousing capabilities for the upstream energy sector under the Make in India initiative.
The mission has already moved into the implementation phase with state-run Oil and Natural Gas Corporation (ONGC) beginning exploration activities. On July 25, 2026, ONGC spudded its first deep-water exploratory well in the Mahanadi Offshore Basin under the Samudra Manthan campaign.
The well is located off the Odisha coast and follows recent discoveries in the Utkal and Konark blocks that have highlighted the basin's hydrocarbon potential. According to ONGC, India's eastern and western offshore basins are estimated to contain more than 5,600 million metric tonnes of oil equivalent (MMTOE) of hydrocarbon resources.
The government expects the scheme to add more than 600 MMTOE of hydrocarbon reserves over time. Annual domestic production is projected to increase by 10-15 MMTOE, with peak production potential reaching 20 MMTOE.
Higher domestic output could help lower India's dependence on imported oil and gas while generating foreign exchange savings. The programme is also expected to support investment, employment generation, indigenous capability development and long-term growth in the energy sector.
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The Cabinet-approved Samudra Manthan scheme represents one of India's largest investments in offshore oil and gas exploration. Through an allocation of ₹84,084 crore, the programme seeks to enhance exploration, infrastructure development and domestic manufacturing capabilities by FY31.
The initiative has already entered the execution stage with ONGC commencing deep-water drilling activities in the Mahanadi Offshore Basin. The government expects the scheme to strengthen domestic hydrocarbon production and support India's long-term energy security objectives.
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Published on: Jul 31, 2026, 4:51 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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