Cabinet Approves 'Samudra Manthan' National Offshore Exploration Scheme
UPSC / SSC current affairs note · Security
Why in news
The Union Cabinet has approved the 'Samudra Manthan' National Offshore Exploration Scheme with an outlay of ₹84,084 crore, marking India's most ambitious offshore exploration initiative. This approval is significant as it aims to boost domestic hydrocarbon production, reduce import dependence, and enhance energy security.
Background
India is the world's third-largest consumer of crude oil with an annual import bill of about $144 billion. The government has implemented several reforms since 2014 to open up the offshore sector, modernize contracts, and improve the regulatory framework. The scheme is a culmination of these transformative reforms.
Key facts
The Union Cabinet, chaired by PM Modi, approved the 'Samudra Manthan' National Offshore Exploration Scheme with an outlay of ₹84,084 crore.
The scheme will be implemented until FY 2030-31.
It is India's most ambitious offshore exploration campaign to date.
The scheme aims to convert policy into action, adding a new chapter to India's journey towards energy security and self-reliance.
India's annual crude oil import bill is approximately $144 billion (about ₹13 lakh crore).
Offshore exploration has high capital costs and typically takes 5-10 years from block allocation to commercial production.
Existing oil and gas fields see a natural production decline of about 6-7% annually, necessitating continuous exploration.
The scheme is part of a series of reforms including opening up offshore areas, modernizing contracts, and legislative changes.
More than 1 million square kilometers of India's Exclusive Economic Zone (EEZ) is now available for exploration, up from less than 1% earlier.
The government has shifted from production-sharing contracts to revenue-sharing contracts for simplicity and transparency.
Prelims pointers
- Scheme: Samudra Manthan (National Offshore Exploration Scheme)
- Ministry: Ministry of Petroleum and Natural Gas
- Outlay: ₹84,084 crore
- Implementation period: till FY 2030-31
- Key legislation: Oil Fields (Regulation and Development) Amendment Act, 2025
- New rules: Petroleum and Natural Gas Rules, 2025
- Contract type: Revenue-sharing contracts (replacing production-sharing)
- Area opened: >1 million sq km of EEZ
- India's rank: 3rd largest consumer of crude oil globally
- Import bill: ~$144 billion annually
Mains angles
- Discuss the significance of 'Samudra Manthan' in enhancing India's energy security and reducing import dependence.
- Critically examine the reforms in India's hydrocarbon sector and their impact on exploration and production.
- Analyze the challenges in offshore exploration and how the scheme addresses them.