India’s ‘Samudra Manthan’: Rs 84,084 Cr for Deep-Sea Crude
By ThePip Desk
India launches ‘Samudra Manthan’ with Rs 84,084 crore to boost deep-sea crude output, reduce import reliance, and enhance energy security.
India has launched the ‘Samudra Manthan National Offshore Exploration Scheme,’ committing an outlay of Rs 84,084 crore to significantly reduce its reliance on imported oil and gas. This ambitious initiative aims to incentivize extensive deepwater and ultra-deepwater exploration across the nation’s offshore territories.
The scheme marks a pivotal policy shift, with the government directly absorbing a portion of exploration risks to boost domestic hydrocarbon production and enhance energy security.
Key Financial Commitments
- Total scheme outlay: Rs 84,084 crore
- Government funding of drilling costs: 50%
- Maximum government contribution per well: Up to Rs 650 crore
- Number of exploration wells targeted: 60
- Scheme duration: Over the next five years
Mechanism of Government Support
Under the ‘Samudra Manthan’ scheme, the government will fund half of the drilling costs for deepwater and ultra-deepwater exploration wells. This financial backing is capped at Rs 650 crore for each of the 60 planned exploration wells over the next five years, directly lowering the upfront capital burden for energy companies.
Beyond direct drilling support, the scheme also allocates funds for crucial offshore seismic surveys and the development of common infrastructure. These measures are designed to attract global energy companies by mitigating high capital intensity and inherent risks associated with deepwater drilling.
Strategic Goals and Expected Impact
Experts note that this scheme directly addresses significant challenges in offshore exploration, including a lack of comprehensive prospectivity data and the substantial capital required for deepwater operations. By sharing the financial load, India aims to unlock previously unexplored hydrocarbon reserves.
The long-term objective is to achieve an incremental annual production of 10-15 million tonnes of oil equivalent. This increase in domestic output is projected to reduce India’s import dependence by 3-5%, while also attracting substantial investment from international energy companies.