Cabinet Approves ₹84,084-crore Samudra Manthan Scheme for Offshore Energy Exploration
UPSC / SSC current affairs note · Economy
Why in news
The Union Cabinet has approved the Samudra Manthan scheme, a major initiative to boost domestic oil and gas exploration and reduce import dependency. This comes as India's crude oil import dependency has risen to 88.7% in 2025-26, making energy security a critical concern.
Background
India's crude oil import dependency has surged from 78.5% in 2014-15 to 88.7% in 2025-26. The scheme is named after the mythological churning of the ocean, reflecting the Prime Minister's vision articulated from the Red Fort on Independence Day last year to unlock India's offshore energy potential.
Key facts
The Union Cabinet approved the Samudra Manthan scheme on August 1, 2026, with a budget of ₹84,084 crore for its first phase up to March 31, 2031.
The scheme aims to catalyse reserve accretion of over 600 million metric tonnes of oil equivalent (MMToE).
It has four key components: acquisition and processing of modern offshore seismic data (₹28,534 crore), drilling of 60 deepwater exploration wells (₹43,200 crore), development of common offshore infrastructure hubs (₹10,000 crore), and establishment of oil and gas manufacturing and services zones (₹2,000 crore).
The government will support up to 50% of eligible drilling cost or ₹675 crore per well for deepwater exploration.
The scheme aims to increase India's domestic oil and gas production from around 62 MMTOE to 80 MMTOE annually.
It also aims to expand the country's hydrocarbon resource base from 1.6 billion tonnes of oil equivalent (TOE) to 2.2 billion TOE.
The additional production has the potential to reduce crude oil imports.
Prelims pointers
- Samudra Manthan scheme: ₹84,084 crore, approved by Union Cabinet.
- First phase up to March 31, 2031.
- Key components: seismic data, deepwater wells, infrastructure hubs, manufacturing zones.
- Target: increase production to 80 MMTOE, resource base to 2.2 billion TOE.
- Crude oil import dependency: 88.7% in 2025-26 (up from 78.5% in 2014-15).
Mains angles
- Discuss the significance of the Samudra Manthan scheme in enhancing India's energy security.
- Critically examine the potential challenges in implementing deepwater exploration projects in India.
- Analyze the role of government schemes in reducing India's dependence on crude oil imports.