India launches ₹84,084-crore deepwater oil exploration scheme with risk-sharing model

The Ministry of Petroleum and Natural Gas has released detailed operational guidelines for the ₹84,084-crore Samudra Manthan scheme, a landmark initiative designed to accelerate exploration of India's deepwater and ultra-deepwater hydrocarbon reserves. Under the programme, the government will co-invest in high-risk exploration wells, fund seismic surveys of offshore basins, and contribute to the development of shared production infrastructure.

The scheme addresses a significant constraint on offshore investment: the combination of high drilling costs and geological uncertainty has deterred private operators from pursuing exploration in India's deep-sea reserves. By sharing both financial burden and drilling risks, the government aims to make these ventures economically attractive to energy companies.

The Samudra Manthan programme will operate through fiscal year 2030-31, with FY2026-27 designated as a preparatory phase. Active spending and project implementation will occur during Phase I, spanning FY2027-28 through FY2030-31. Petroleum Secretary Neeraj Mittal described the initiative as "the most ambitious upstream oil and gas intervention undertaken in recent times," signalling the government's commitment to boosting domestic hydrocarbon production.

The scheme forms part of India's broader strategy to curtail its substantial reliance on imported oil and gas. By enhancing the commercial viability of deepwater exploration, policymakers expect to unlock significant domestic reserves and strengthen energy security.