The Union Cabinet's approval of the Rs 84,084 crore Samudra Manthan – National Offshore Exploration Scheme is being positioned as a strategic and possibly game-changing move for India's energy security, according to Business-Today. The scheme targets the addition of over 600 Million Metric Tons of Oil Equivalent (MMTOE) of reserves and is slated for implementation through FY 2030-31.
The origin: From Red Fort to the deep sea
The scheme traces its origins to August 15, 2025, when Prime Minister Narendra Modi announced the National Deep Water Exploration Mission from the ramparts of the Red Fort, according to Business-Today.
To make the country developed, we are now moving towards ‘Samudra Manthan’ (churning of the ocean). Taking forward our Samudra Manthan, we want to work in a mission mode towards finding oil reserves, gas reserves under the sea and hence India is going to start the National Deep Water Exploration Mission.
— PM Narendra Modi, August 15, 2025
Six months later, India's energy security faced one of its biggest tests with the start of the Middle East conflict, an unprecedented oil shock for an economy largely dependent on imports for its oil, LPG and LNG needs, the report said. Although the subsequent US-Iran war has subsided and India has managed to diversify its supply chain, the reality of dependence and vulnerability remains.
What the scheme includes
The Samudra Manthan – National Offshore Exploration Scheme aims to unlock India's offshore oil and gas potential through large-scale seismic surveys, deepwater exploration, scientific drilling, shared offshore infrastructure and an integrated manufacturing ecosystem. Key elements listed by Business-Today include:
- Large-scale acquisition, processing and interpretation of high-quality seismic data.
- Accelerated deepwater and ultra-deepwater exploratory drilling.
- Scientific drilling in frontier basins.
- Development of common offshore production and evacuation infrastructure.
- Creation of an integrated Oil & Gas Manufacturing and Services Zone.
- Digital programme management, capacity building, technology adoption, stakeholder engagement and international outreach.
The import dependence reality
India is a major oil importer, with nearly 90% of its crude oil needs met through imports, according to Business-Today. The vulnerability came into stark light during the US-Iran conflict when closure of the Strait of Hormuz left India exposed to an oil and gas supply shock. As per the Petroleum Planning & Analysis Cell (PPAC), domestic crude oil production stood at 28.71 million tonnes in FY 2025-26, while crude oil import dependence reached 88.7%.
Sourav Mitra, Partner – Oil & Gas at Grant Thornton Bharat, noted that India has built a meaningful exploration platform, but its upstream output remains well below the country's hydrocarbon requirement, with the supply gap remaining substantial.
| Parameter | Figure |
|---|---|
| Scheme outlay | Rs 84,084 crore |
| Target reserves addition | 600+ MMTOE |
| Implementation period | Through FY 2030-31 |
| Blocks awarded (as of July 2026) | 172 |
| Area covered | ~3.8 lakh sq km |
| Committed investment | >$4.3 billion |
| Wells drilled in FY 2025-26 | ~674 |
| Domestic crude production FY 2025-26 | 28.71 million tonnes |
| Crude import dependence FY 2025-26 | 88.7% |
Exploration momentum already underway
As of July 2026, 172 blocks covering nearly 3.8 lakh square kilometres had been awarded under the Open Acreage Licensing Programme, with committed investment exceeding $4.3 billion, according to Business-Today. Around 674 wells were drilled in FY 2025-26, and nearly 99% of the erstwhile offshore “No-Go” areas have also been opened for exploration. Yet the supply gap remains substantial, Mitra told the publication.
What this means for commodity markets
For oil and gas traders, procurement teams and commodity analysts, the Samudra Manthan scheme signals a long-term effort to curb India's import dependence and its exposure to chokepoints such as the Strait of Hormuz. The committed $4.3 billion in exploration investment and 172 awarded blocks already indicate the scale of upstream activity, even as domestic production remains on a downward trajectory. Any material uplift in domestic output would shift India's import requirement trajectory, a variable that global crude markets watch closely — though the immediate supply gap persists, according to Business-Today.
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