Samudra Manthan scheme guidelines issued to boost deepwater oil and gas exploration

Samudra Manthan scheme guidelines unveiled

The Centre has released operational guidelines for its landmark ₹84,084-crore Samudra Manthan scheme, offering to cover up to half the cost of deepwater exploration wells to bolster national energy independence.

Under the rules, the state will shoulder early geological risks by absorbing costs if a well turns out dry. If exploration yields commercial oil or gas, the government will recoup its funding through annual instalments after seven years of commercial production, or once the operator recovers 50 per cent of its development costs, whichever comes first.

The ambitious initiative, designed to cut India’s reliance on foreign energy imports, will run through FY2030-31. Prime Minister Narendra Modi announced the mission during his 2025 Independence Day address, outlining a focused drive to unlock deepwater reserves under Indian seas. Petroleum Secretary Neeraj Mittal noted that the scheme represents the most ambitious upstream intervention in recent times, with the potential to add more than 600 million tonnes of oil equivalent to national reserves.

Funding breakdown for offshore exploration

The scheme targets 60 offshore wells in deepwater locations deeper than 400 metres and ultra-deepwater areas beyond 1,500 metres. Only state-run enterprises or consortia led by public sector undertakings are eligible to apply.

Disbursements will follow strict performance milestones, paying 40 per cent when drilling reaches 40 per cent of the target depth and the remaining 60 per cent upon approval of the final well report. Total well support alone could reach ₹43,200 crore. Eligibility is restricted to exploration blocks awarded under the post-2016 Revenue Sharing Contract regime.

Infrastructure and manufacturing hubs

Beyond well drilling, Samudra Manthan introduces viability gap funding for shared offshore infrastructure to unlock stranded discoveries in basins like Mahanadi and Kutch. Joint ventures can build shared subsea manifolds, pipelines, and central processing platforms operated under non-discriminatory access rules.

A third track will support specialized manufacturing and services zones equipped with berthing jetties, certification laboratories, and warehousing to position India as a global fabrication hub for deepwater technologies. To support baseline exploration, the Directorate General of Hydrocarbons will manage 2D seismic surveys fully funded by the government, along with 3D surveys under a co-investment model.