Samudra Manthan: Government Launches ₹84,084 Crore Plan to Boost Deepwater Exploration

Overview of Samudra Manthan

The Indian government has unveiled the 'Samudra Manthan' initiative, a ₹84,084 crore plan aimed at accelerating oil and gas exploration in deepwater and ultra-deepwater regions. By sharing exploration risks and costs, the Ministry of Petroleum and Natural Gas seeks to reduce India’s reliance on imported hydrocarbons.

Key Components and Financial Structure

The scheme, which runs through fiscal year 2030-31, provides financial support for exploration drilling and infrastructure development:

• Exploratory Wells: The government will cover up to 50% of costs for 56 exploratory wells, capped at ₹675 crore per well.
• Stratigraphic Wells: 100% of costs for four stratigraphic wells will be supported, capped at ₹1,350 crore per well.
• Infrastructure Support: Viability gap funding is available for shared infrastructure like pipelines, subsea manifolds, and processing units.

Eligibility and Implementation

Only state-owned companies or consortia led by them are eligible to apply. The initiative is restricted to blocks under the Revenue Sharing Contract regime. The implementation process is managed by the Directorate General of Hydrocarbons (DGH), with oversight from an executive committee chaired by the Petroleum Secretary. Payments are linked to specific drilling milestones, with 40% released at the 40% depth mark and the remainder upon project completion.

How to Verify

Stakeholders and interested parties can verify official details and procedural updates by accessing the guidelines published by the Ministry of Petroleum and Natural Gas. Proposals for specific projects, such as those in the Mahanadi or Kutch basins, must be reviewed by the Public Investment Board before final approval.