Samudra Manthan Scheme: Features, Objectives & Significance
Source: PIB
GS III: Infrastructure- Energy
Overview
- The Samudra Manthan – National Offshore Exploration Scheme is a flagship initiative of the Ministry of Petroleum and Natural Gas to accelerate offshore hydrocarbon exploration and production in India.
- With a Phase-I outlay of ₹84,084 crore up to FY 2030–31, the scheme adopts a mission-mode approach to strengthen domestic energy capabilities through advanced exploration technologies, shared offshore infrastructure, and an enabling policy ecosystem.
- It seeks to enhance India’s long-term energy resilience while supporting the broader objectives of Atmanirbhar Bharat and Make in India.
Why in the News?
The Union Cabinet approved Samudra Manthan – National Offshore Exploration Scheme on 31 July 2026 to strengthen India’s offshore oil and gas exploration.
News in Brief
- The scheme has a Phase-I outlay of ₹84,084 crore up to FY 2030–31.
- It aims to unlock India’s untapped offshore hydrocarbon potential, reduce import dependence, and improve energy security.
- The scheme adopts a mission-mode approach with modern technology, AI-enabled exploration, common infrastructure, and domestic manufacturing support.
Samudra Manthan scheme
- The Samudra Manthan scheme (officially the National Offshore Exploration Scheme) is run by the Ministry of Petroleum and Natural Gas.
- It aims to boost deepwater oil and gas exploration, de-risk offshore projects, and strengthen India’s energy security.
Key Objectives
- India’s offshore basins are estimated to contain over 5,600 MMTOE of hydrocarbon resources, particularly in the Cauvery, Mahanadi, and Andaman basins.
- The scheme seeks to add over 600 Million Metric Tonnes of Oil Equivalent (MMTOE) in hydrocarbon reserves.
- Targets to raise domestic oil and gas production from about 62 MMTOE to 80 MMTOE annually.
- Aims to reduce crude oil import dependence and save up to ₹1 lakh crore yearly.
- The scheme focuses on accelerating deepwater and ultra-deepwater exploration across India’s offshore territories.
- It will promote indigenous offshore technology and manufacturing.
- The scheme aims to build a globally competitive offshore energy ecosystem.
Related Reforms
- Hydrocarbon Exploration and Licensing Policy (HELP), 2016 – Introduced a transparent licensing regime with uniform licensing, revenue sharing, and marketing freedom to promote hydrocarbon exploration.
- Open Acreage Licensing Programme (OALP) – Enables companies to identify and bid for exploration blocks of their choice throughout the year.
- Production Sharing Contracts (PSC) to Revenue Sharing Contracts (RSC) – Replaced the profit-sharing model with a simpler revenue-sharing framework to improve transparency and ease of doing business.
- Oilfields (Regulation and Development) Amendment Act, 2025 – Strengthened the legal framework by ensuring contractual stability and a modern regulatory architecture for petroleum operations.
- Petroleum and Natural Gas Rules, 2025 – Operationalised the amended Act by streamlining petroleum lease administration and improving ease of doing business.
Major Components of the Scheme
- Seismic Data Acquisition – Funds large-scale 2D and 3D seismic mapping, deploys AI-based processing tools, and reprocesses legacy data from the National Data Repository (NDR).
- Accelerated Offshore Exploration – Subsidizes up to 50% of drilling expenses for 60 deepwater and ultra-deepwater exploratory wells, open to public and private firms.
- Common Offshore Infrastructure- Builds shared production networks and evacuation pipelines, emphasizing resource-heavy locations like the Mahanadi and Kutch basins.
- Manufacturing & Services Zone– Establishes localized hubs for marine engineering, equipment repair, and warehousing to align with the Make in India initiative.
- Monitoring & Support- Dedicated funds for digital tracking, program execution, and human resource development.
Significance for India and associated Challenges
- Energy Security- Secures long-term oil and gas supplies from domestic offshore basins.
- Import Savings- Lowers massive crude import bills and saves valuable foreign exchange.
- Private Investment- Invites public and private operators into high-risk offshore blocks with state co-funding.
- Local Industry– Grows indigenous manufacturing, high-tech marine jobs, and digital project management.
- National Vision- Aligns with Viksit Bharat by building a self-reliant energy ecosystem.
Key Challenges
- High Costs- Deepwater and ultra-deepwater drilling require massive capital outlays over many years.
- Deep-Sea Risks– Complex underwater geology increases operational and technological failure risks.
- Ecosystem Protection- Offshore drilling poses potential threats to marine life and coastal environments.
- Skill Gaps- Demands specialized naval engineering, advanced seismic gear, and expert technicians.
- Global Markets– Fluctuating international crude prices can disrupt projected financial returns,
Conclusion
Samudra Manthan marks a significant step in India’s journey towards energy security and self-reliance.
It focuses on accelerating exploration, deploying modern technology, creating shared infrastructure, and strengthening domestic manufacturing.
UPSC Prelims and Mains Practice Question
Consider the following statements regarding the Samudra Manthan Scheme:
- It aims to promote offshore hydrocarbon exploration in India.
- It supports both public and private exploration companies.
- The scheme provides financial support for drilling deepwater and ultra-deepwater exploration wells.
Which of the statements given above are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: D
Mains Practice Question
Q. “Discuss the importance of domestic hydrocarbon exploration in enhancing India’s energy security and reducing import dependence. What are the major challenges in achieving these objectives?” (15 Marks, 250 Words)
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