August 3, 2026: In a major push to strengthen India's energy security, the Centre has approved the Rs. 840.84 billion Samudra Manthan National Offshore Exploration Scheme, under which the government will directly fund part of the cost of high-risk deepwater oil and gas exploration, a move aimed at reducing the country's dependence on imported crude and natural gas, as reported by news agency PTI.

The Union Cabinet last week approved the scheme, under which the government will fund up to 50 per cent of the cost of drilling a deepwater or ultra-deepwater exploration well, or Rs. 6.50 billion per well, whichever is lower. Officials said support will be extended for 60 exploration wells over the next five years.

Officials described the initiative as an unprecedented intervention, with the government directly underwriting exploration risk through budgetary support.

Samudra Manthan aims to unlock India's untapped deepwater energy reserves

"This perhaps is the first time that any government in the world is funding risk exploration from the budget," an official told PTI, adding that "in all, 60 deepwater and ultra-deepwater exploration wells over the next five years will be funded from the budget."

Apart from supporting exploration drilling, the government will also part-fund common infrastructure such as subsea pipelines and onshore oil and gas receipt and processing facilities, enabling multiple operators to commercialise discoveries using shared assets.t

Officials said private companies have traditionally avoided risk exploration because investments have to be written off if commercially viable reserves are not found.

"They were spending money only on development drilling -- producing already established discoveries. Hardly any money went into risk exploration, which is key to finding new resources," an official told PTI.

Calling the programme a significant policy shift, another official said, "Samudra Manthan is, in that sense, a game-changing scheme," the official told PTI.

Companies holding blocks awarded under previous Open Acreage Licensing Programme (OALP) rounds, as well as firms securing acreage in the ongoing bidding round, will be eligible for government support of up to Rs. 6.50 billion for every deepwater or ultra-deepwater exploratory well they drill.

The scheme is also expected to attract global energy companies to India's offshore exploration sector.

Commenting on the initiative, Prashant Vashisht, Senior Vice President at ICRA Ltd, said the programme addresses one of the major hurdles in offshore exploration.

(Source: Money Control)