- Why in news
- On 31 July 2026 the Union Cabinet approved 'Samudra Manthan', the National Offshore Exploration Scheme, with an outlay of ₹84,084 crore through FY 2030–31 (release dated 1 August 2026).
- What it is
- Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas to speed up offshore oil and gas exploration. It combines seismic data, risk-sharing support for deepwater wells, common infrastructure and domestic manufacturing zones. It follows earlier reforms that opened offshore acreage and changed the contract regime.
- Type and outlay
- Central Sector Scheme of the Ministry of Petroleum and Natural Gas, with a Phase-I outlay of ₹84,084 crore up to 31 March 2031.
- Drilling support
- Government supports up to 50% of eligible drilling cost, capped at ₹675 crore per well, for 60 deepwater exploration wells (₹43,200 crore).
- Other components
- Seismic data ₹28,534 crore; common offshore infrastructure hubs ₹10,000 crore; Oil and Gas Manufacturing and Services Zones ₹2,000 crore.
- Targets
- Raise domestic oil and gas output from about 62 to 80 MMTOE a year and the resource base from 1.6 to 2.2 billion TOE, subject to exploration success.
- Target basins
- Future potential lies in deepwater and ultra-deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi and Andaman.
- Contract regime
- India moved from Production Sharing Contracts to Revenue Sharing Contracts.
- Type and ministry
- A Central Sector Scheme of the Ministry of Petroleum and Natural Gas.
- Outlay and period
- Rs.84,084 crore, to be implemented up to FY 2030-31.
- Components
- Seismic data, deepwater and ultra-deepwater drilling, scientific drilling in frontier basins, common offshore production and evacuation infrastructure, and an integrated Oil & Gas Manufacturing and Services Zone.
- Expected outcome
- Reserve accretion of over 600 MMTOE, more production, employment and indigenous manufacturing.
- Origin
- Based on the Prime Minister's Independence Day 2025 speech from the Red Fort.
Don’t confuse with Production Sharing vs Revenue Sharing Contract: Under a PSC the government shares profit petroleum after cost recovery. Under a Revenue Sharing Contract the government takes a share of gross revenue, with no cost-recovery audit.
Don’t confuse with Central Sector vs Centrally Sponsored Scheme: A Central Sector Scheme is fully funded and run by the Centre. A Centrally Sponsored Scheme is shared with States.
Don’t confuse with Samudra Manthan vs Deep Ocean Mission: Samudra Manthan targets offshore oil and gas exploration under the Petroleum Ministry. The Deep Ocean Mission is under the Ministry of Earth Sciences and covers deep-sea technology and resources.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Cuts import dependence: India imports crude worth nearly USD 144 billion a year, and the scheme could cut imports by about ₹1 lakh crore annually.
- Shares the risk of costly deepwater wells, which cost about USD 125–150 million each, and so draws private investment.
- Builds domestic capability through seismic data, common infrastructure hubs and manufacturing zones.
- Raises domestic oil and gas output and reduces import dependence, supporting energy security.
- Common infrastructure and a manufacturing zone support Make in India and jobs.
Problems
- Exploration is high-risk and slow: 5–10 years from block award to production, and success is not assured.
- Existing fields decline by about 6–7% a year, so new finds must first offset this before output rises.
- Deepwater work needs advanced technology and large capital, and private firms may stay cautious.
- Deepwater and ultra-deepwater drilling is capital-intensive, technically difficult and risky, with uncertain finds.
- Needs private and foreign investors, who depend on stable contract terms and clearances.
Way forward
- Release seismic data openly and award blocks on time so investors can plan.
- Keep fiscal terms stable and speed up clearances, including environmental ones for offshore work.
- Pair exploration with cheaper deepwater technology and local manufacturing.
- Keep contract and fiscal terms stable to draw investors and technology partners.
- Use the National Data Repository and seismic data to cut exploration risk, with environmental safeguards.
Put in your answer
Import bill: India is the world's third-largest crude oil consumer with an import bill of about USD 144 billion a year.
Natural decline: Existing oil and gas fields decline naturally by about 6–7% a year, so continuous exploration is needed.
Acreage opened: Over 99% of earlier 'No-Go' areas were removed, opening over one million sq km of the EEZ for exploration.
Scheme outlay: Rs.84,084 crore up to FY 2030-31, a Central Sector Scheme.
Expected reserve addition: Over 600 MMTOE of reserve accretion is expected.
Earlier upstream reforms: The Government opened almost the entire offshore acreage, modernised the legal and contract framework and strengthened the National Data Repository.
- 2013Mains GS1 · Q25Availability and issues in tapping India's shale oil and gas reserves.
- 2025Mains GS1 · Q14Geographical distribution of world offshore oil reserves, and how they differ from onshore.
- 2014Mains GS1 · Q24Critically evaluate ocean resources that can meet world resource crisis.
- 2026Prelims Q50Which statements about India's Deep Ocean Mission are correct?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Single answer
Ours, not from a UPSC paper
Consider the following statements about 'Samudra Manthan', the National Offshore Exploration Scheme approved by the Union Cabinet in 2026: 1. It is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas. 2. Government support for deepwater exploration wells is up to 50% of eligible drilling cost or ₹675 crore per well, whichever is lower. 3. The largest share of its outlay is for offshore seismic data acquisition. 4. It follows India's move from Revenue Sharing Contracts to Production Sharing Contracts.
Which of the statements given above are correct?
True or false?
1 of 11
Statements the way Prelims prints them. Say first, then see the fact.
1.Samudra Manthan is a Centrally Sponsored Scheme in which States share the cost with the Centre.
False. It is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas.
2.The scheme offers Government support of up to 50% of eligible drilling cost of deepwater exploration wells, subject to a cap of ₹675 crore per well.
True. Support is up to 50% of eligible cost or ₹675 crore per well, whichever is lower.
3.The scheme provides for drilling of 60 deepwater exploration wells.
True. The drilling component covers 60 deepwater wells with ₹43,200 crore.
4.The largest share of the scheme's outlay is for offshore seismic data acquisition.
False. The largest share is for drilling deepwater exploration wells (₹43,200 crore), more than seismic data (₹28,534 crore).
5.The scheme aims to raise India's domestic oil and gas production from around 62 MMTOE to 80 MMTOE annually, subject to exploration success.
True. Target is 62 to 80 MMTOE a year.
6.Krishna-Godavari, Cauvery and Mahanadi are among the deepwater basins the release names as holding India's future hydrocarbon potential.
True. The release names Krishna-Godavari, Cauvery, Mahanadi and the Andaman region.
7.The scheme is administered by the Ministry of Petroleum and Natural Gas.
True. The Ministry of Petroleum and Natural Gas runs the scheme.
8.The scheme has an approved outlay running up to FY 2030-31.
True. Implementation is approved up to FY 2030-31.
9.The scheme is expected to add reserves of over 600 MMTOE.
True. Expected reserve accretion is over 600 MMTOE.
10.The scheme is limited to shallow-water drilling and excludes deepwater and ultra-deepwater wells.
False. It provides for accelerated deepwater and ultra-deepwater exploratory drilling and scientific drilling in frontier basins.
11.The scheme includes establishing an integrated Oil & Gas Manufacturing and Services Zone.
True. An integrated Oil & Gas Manufacturing and Services Zone is a component.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The Union Cabinet has approved 'Samudra Manthan', a ₹84,084 crore National Offshore Exploration Scheme, which shares the risk of deepwater drilling with private operators. Discuss the main provisions of the scheme and examine the challenges in using it to reduce India's dependence on imported oil and gas.
Worth revising until Prelims 2028: most news questions come within two years of the event.