India's deep-sea bet: Centre's 'Samudra Manthan' to churn crude — How it works

India's Union Cabinet approved the Rs 84,084 crore 'Samudra Manthan' National Offshore Exploration Scheme, which funds 50% of the cost of drilling a deepwater or ultra-deepwater exploration well, up to Rs 650 crore per well.

The scheme supports 60 exploration wells over the next five years and is available to companies holding blocks under previous Open Acreage Licensing Programme (OALP) rounds or the ongoing bidding round.

Crude oil imports have risen from 77% to 88% of India's requirement over the past decade, and the country imports about half of its natural gas, highlighting the need to boost domestic production.

The government aims to attract global energy companies to India's offshore basins by sharing financial risks, encouraging exploration in deepwater areas previously avoided due to high costs.