Overview
- The Union Cabinet approved Samudra Manthan on Monday, August 3, 2026, allocating Rs84,084 crore for implementation through FY2030‑31 to boost offshore oil and gas exploration.
- The programme is split into four components with specific budgets: seismic acquisition and processing (Rs285.34 billion), 60 deepwater exploratory wells (Rs432 billion), common offshore infrastructure hubs (Rs100 billion), and oil and gas manufacturing and service zones (Rs20 billion).
- The government will reimburse up to 50% of eligible deepwater drilling costs per well, capped at Rs6.75 billion or 50% of costs whichever is lower, to lower investment risk for companies.
- The Ministry projects a rise in annual output and in-place resources if exploration succeeds and estimates about a Rs1 trillion annual reduction in the crude import bill, but analysts say meaningful cuts in import dependence are unlikely within the next five to ten years.
- Samudra Manthan targets deepwater basins such as Krishna‑Godavari, Cauvery, Mahanadi and Andaman where single wells can cost $125–150 million, and the immediate effect will be more seismic data and appraisal work rather than near‑term production; Oil India’s June finds in the Andaman Basin remain not proven commercially viable.