Rs 84,084 Crore Samudra Manthan Scheme: Business Impact
India has approved the Rs 84,084 crore Samudra Manthan offshore exploration scheme. Explore its funding, incentives, business impact and opportunities.
Schedule a Call Back
Introduction
The government has approved the Samudra Manthan Offshore Exploration Scheme with a budget of Rs 84,084 crore. The scheme will support offshore oil exploration in India, including deepwater drilling and the development of oilfield infrastructure in India. Companies involved in these projects will need to understand the approvals, documents and other rules that apply to their work. Regulatory compliance services can help businesses understand these requirements and manage the process properly.
Samudra Manthan Offshore Exploration Scheme: Rs 84,084 Crore Plan for India’s Oil and Gas Sector
The Union Cabinet approved the Samudra Manthan offshore exploration scheme on 31 July 2026. Formally called the National Offshore Exploration Scheme, it has a Phase-I outlay of Rs 84,084 crore for implementation through financial year 2030-31.
The Ministry of Petroleum and Natural Gas will administer this Central Sector Scheme. It aims to expand offshore seismic surveys, finance 60 deepwater exploration wells, develop shared offshore infrastructure and build domestic oilfield manufacturing capacity.
One of its main features is government support for eligible deepwater drilling expenditure. The support may cover up to 50% of the eligible cost or Rs 675 crore per well, whichever is lower.
This is a development and investment scheme, not a new compliance notification imposing immediate duties on every oil and gas business. Detailed application conditions, selection procedures, tender dates and claim requirements were not specified in the Cabinet announcement.
What is the Samudra Manthan offshore exploration scheme?
The National Offshore Exploration Scheme 2026, also known as the Samudra Manthan offshore exploration scheme, is a deepwater exploration scheme designed to strengthen India’s offshore oil and gas exploration. Approved by the Union Cabinet on 31 July 2026, the scheme has a Phase-I outlay of Rs 84,084 crore through 2030-31. It focuses on expanding offshore seismic surveys, supporting deepwater exploration wells, developing shared offshore infrastructure and promoting domestic manufacturing of oilfield equipment. The Ministry of Petroleum and Natural Gas will oversee its implementation.
Scheme at a Glance
| Particular | Verified details |
| Scheme name | Samudra Manthan: National Offshore Exploration Scheme |
| Issuing authority | Union Cabinet, Government of India |
| Implementing ministry | Ministry of Petroleum and Natural Gas |
| Scheme type | Central Sector Scheme |
| Cabinet approval date | 31 July 2026 |
| PIB announcement date | 1 August 2026 |
| Official release number | PIB Release ID 2292841 |
| Phase-I outlay | Rs 84,084 crore |
| Implementation period | Up to FY 2030-31, ending 31 March 2031 |
| Main sector | Offshore hydrocarbon exploration and production |
| Main stakeholders | Public and private exploration and production operators, contractors, manufacturers and oilfield service providers |
| Deepwater wells proposed | 60 |
| Drilling support | Up to 50% of eligible drilling cost or Rs 675 crore per well, whichever is lower |
| Reserve objective | More than 600 million tonnes of oil equivalent |
| Application deadline | Not expressly specified |
| Detailed eligibility rules | Not expressly specified in the Cabinet release |
| Nature of update | Government investment and exploration-support scheme, not a general compliance mandate |
The official Cabinet announcement describes the scheme as India’s largest offshore exploration mission so far. The Rs 84,084 crore figure is the scheme’s total Phase-I outlay. It should not be understood as an automatic grant available to every operator.
Background of India’s Offshore Exploration Framework
India depends heavily on imported crude oil and natural gas. According to the government, India is the world’s third-largest crude oil consumer. Its annual oil import bill is nearly USD 144 billion, or around Rs 13 lakh crore.
Offshore exploration can help India find resources beneath the seabed. However, deepwater drilling involves high costs, uncertain geological results and long development periods. The government estimates that one deepwater exploration well may cost about USD 125-150 million.
The period between the award of an exploration block and commercial production may range from five to ten years. Existing oil and gas fields also experience an estimated natural production decline of 6-7% each year. Fresh exploration is therefore needed even to maintain existing domestic production levels.
Connection with HELP and OALP
The Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016. HELP remains an important part of India’s hydrocarbon exploration policy, covering how exploration blocks are offered and operated. The Open Acreage Licensing Programme (OALP) operates under HELP and allows investors to identify exploration areas and submit expressions of interest.
The policy framework introduced:
- A uniform licence for conventional and unconventional hydrocarbons.
- A revenue-sharing contract model.
- Reduced royalty rates for certain areas.
- No oil cess under the HELP regime.
- Incentives for early commercial production.
- Longer and phased exploration periods for specified basins.
Government data show that 172 exploration blocks covering approximately 3,78,652 square kilometres have been awarded under nine OALP rounds.
Opening of offshore areas
More than 99% of the areas earlier classified as offshore “No-Go” zones have now been opened for exploration. This has made more than one million square kilometres of India’s Exclusive Economic Zone available for potential exploration.
An Exclusive Economic Zone is the sea area where India has rights over natural resources, subject to applicable domestic and international law.
Updated legal framework
The scheme follows the Oilfields (Regulation and Development) Amendment Act, 2025 and the Petroleum and Natural Gas Rules, 2025. These reforms address contractual stability, petroleum operations, dispute resolution and the administration of petroleum leases.
Samudra Manthan does not replace HELP, OALP, petroleum leases or existing exploration contracts. It adds government-funded data, risk-sharing and infrastructure support to the wider legal and contractual framework.
Why the Samudra Manthan Scheme Was Introduced
The government wants to reduce the financial and geological risks associated with offshore exploration. Deepwater wells require advanced vessels, equipment, technical staff and data. A dry well can result in substantial expenditure without a commercial discovery.
The scheme addresses four connected problems:
- Limited modern seismic coverage in offshore basins makes it harder to identify drill-ready prospects.
- Deepwater and ultra-deepwater drilling costs may discourage private investment.
- Some discoveries cannot be commercialised because production and evacuation infrastructure is too expensive.
- India depends on imported oilfield equipment, technology, repair facilities and specialised services.
By sharing eligible exploration risks and creating common infrastructure, the government expects to attract more public and private investment.
What Has Been Introduced?
Samudra Manthan combines exploration funding, geological data, infrastructure and manufacturing support under one programme.
| New component | Allocation | Main purpose | Practical business meaning |
| Offshore data acquisition | Rs 28,534 crore | Expand 2D and 3D seismic coverage and improve data interpretation | More geological data may support block evaluation and drilling decisions |
| Offshore exploration acceleration | Rs 43,200 crore | Support 60 deepwater and ultra-deepwater wells | Eligible operators may receive partial drilling-cost support |
| Common offshore infrastructure | Rs 10,000 crore | Develop shared production and evacuation facilities | Discoveries that were previously uneconomic may become easier to develop |
| Oil and Gas Manufacturing and Services Zones | Rs 2,000 crore | Build domestic manufacturing, repair, storage and engineering capacity | New opportunities may arise for equipment manufacturers and service companies |
| Monitoring and support | Rs 350 crore | Digital management, evaluation, training and outreach | Supports scheme administration and industry capacity |
| Total | Rs 84,084 crore | Phase-I implementation through FY 2030-31 | Creates an integrated offshore exploration ecosystem |
Detailed Breakdown of the Rs 84,084 Crore Scheme
The Rs 84,084 crore offshore oil and gas scheme details cover several areas, from seismic surveys and data collection to deepwater exploration and drilling support.
1. Modern offshore seismic data
The government has allocated Rs 28,534 crore for data acquisition, processing and interpretation. The allocation includes:
- Rs 12,000 crore for basin-wide two-dimensional seismic surveys.
- Rs 12,534 crore for three-dimensional seismic surveys and other techniques.
- Rs 4,000 crore for reprocessing National Data Repository information and deploying artificial intelligence tools.
A seismic survey uses sound waves to map rock formations below the seabed. Two-dimensional surveys provide broad geological profiles. Three-dimensional surveys offer more detailed subsurface models for identifying potential drilling locations.
Better data does not guarantee a commercial discovery. It can, however, help operators assess geological risk more accurately before committing money to drilling.
2. Support for 60 deepwater exploration wells
The largest allocation is Rs 43,200 crore for accelerated offshore exploration. The scheme plans to support the drilling of 60 deepwater and ultra-deepwater wells, with offshore drilling financial support available to eligible operators.
The Government support for deepwater drilling in India can cover:
- Up to 50% of the eligible drilling cost, or
- Up to Rs 675 crore for each well,
whichever is lower.
The scheme explainer states that this component is open to public and private exploration and production operators. However, the Cabinet announcement does not provide detailed qualification rules, the meaning of eligible cost, the selection method or the procedure for claiming support.
Operators should wait for implementing guidelines before preparing an application or treating any expenditure as reimbursable.
3. Common production and evacuation infrastructure
Rs 10,000 crore has been allocated for shared infrastructure in selected offshore basins. The government has specifically highlighted the difficulty of commercialising discoveries in areas such as the Mahanadi and Kutch basins.
Common infrastructure may include facilities needed to produce, process or transport offshore hydrocarbons. Shared facilities can lower the capital cost borne by an individual operator.
The precise basins, infrastructure models, access charges, ownership arrangements and procurement procedures have not yet been specified in the cited announcement.
4. Oil and Gas Manufacturing and Services Zones
The scheme provides Rs 2,000 crore for an oil and gas manufacturing zone focused on building domestic manufacturing and services capacity.
These zones are intended to build Indian capacity in:
- Oilfield equipment manufacturing.
- Equipment repair and maintenance.
- Engineering and technical services.
- Warehousing and logistics.
- Offshore technology support.
- Specialised exploration and production services.
The Oil and gas manufacturing and services zone in India may create opportunities for established oilfield suppliers, engineering companies, shipyards, fabrication businesses and specialised micro, small and medium enterprises. No location, allotment process or investor eligibility condition was announced in the Cabinet release.
5. Programme monitoring and technical support
A further Rs 350 crore is allocated for:
- Digital programme management.
- Monitoring and evaluation.
- Human-resource development.
- Technology adoption.
- Awareness and industry outreach.
- Events and international engagement.
This allocation supports scheme administration rather than direct drilling or infrastructure construction.
Who May Benefit from the Scheme?
The scheme could create opportunities for different businesses involved in offshore exploration, drilling, surveys and related services.
| Stakeholder | Possible relevance | Present position |
| Public-sector E&P operators | Deepwater drilling, data and infrastructure support | Identified as potential participants |
| Private E&P operators | Risk-sharing support for eligible wells | Scheme is stated to be open to private operators |
| Seismic survey companies | Survey, processing and interpretation work | Procurement opportunity may arise |
| Offshore drilling contractors | Work connected with the proposed 60 wells | Subject to operator procurement and future tenders |
| Equipment manufacturers | Supply of drilling, subsea and production equipment | Manufacturing-zone opportunities may develop |
| Engineering and maintenance companies | Fabrication, repair, testing and project support | Potential supply-chain opportunity |
| Technology and AI providers | Geological data processing and digital programme management | Potential service opportunity |
| MSMEs and startups | Component supply, software, logistics and specialised services | No MSME reservation or separate incentive has been specified |
| Existing offshore discoveries | Possible access to common infrastructure | Limited to selected basins and future implementation conditions |
Potential commercial relevance does not create an automatic legal entitlement. Participation will depend on future guidelines, contracts, procurement documents and technical qualification conditions.
Samudra Manthan scheme Implementation Timeline
The Samudra Manthan scheme implementation timeline runs through FY 2030-31, although the dates for applications and tenders have not yet been announced.
| Event | Date or period | Business significance |
| Union Cabinet approval | 31 July 2026 | Policy and financial approval granted |
| PIB announcement | 1 August 2026 | Main scheme structure publicly released |
| Detailed PIB explainer | 3 August 2026 | Component-level information published |
| Phase-I implementation | Up to FY 2030-31 | Approved programme period |
| Phase-I closing date | 31 March 2031 | End of the stated implementation period |
| Application or tender opening | Not expressly specified | Businesses must monitor later announcements |
| Deadline for operator proposals | Not expressly specified | No current filing deadline should be assumed |
Cabinet approval establishes the scheme’s policy direction and financial outlay. Operational guidelines, invitations, tenders or project-specific approvals will be required before businesses can access particular opportunities.
Present Compliance Position for Businesses
The scheme does not impose a new general registration, filing, testing or reporting deadline on oil and gas businesses.
It also does not automatically modify an operator’s existing revenue-sharing contract, production-sharing contract, petroleum lease or work programme. Current contractual and regulatory obligations continue unless a competent authority issues a separate amendment or direction.
Businesses should distinguish between:
- Cabinet-approved scheme provisions: The outlay, four main components, implementation period and headline drilling support.
- Future operating conditions: Eligibility, application procedure, tender terms, eligible expenditure and disbursement controls.
- Existing legal duties: Petroleum leases, contractual work commitments, environmental permissions, marine safety conditions and other project approvals.
- Practical recommendations: Monitoring official releases, preparing technical capacity and reviewing financial exposure.
An operator should not assume that Cabinet approval waives environmental, safety, contractual or technical requirements applicable to offshore operations.
Expected Impact on the Oil and Gas Industry
The scheme could affect different parts of the oil and gas industry, from exploration companies and contractors to manufacturers and smaller businesses.
Exploration and production operators
The drilling support could make some high-risk offshore wells more viable for exploration and production companies. Better seismic data may also help companies understand the area before deciding where to drill. However, companies will still have to bear a significant part of the cost. The outcome will depend on what is discovered, further testing, development expenses and the approvals needed to start commercial production.
Offshore contractors and service providers
The proposed drilling programme can increase demand for:
- Drilling rigs and vessels.
- Subsea equipment.
- Well engineering services.
- Geological and geophysical analysis.
- Remote monitoring systems.
- Marine logistics.
- Inspection, maintenance and repair services.
Contract awards will depend on future procurement and operator requirements.
Indian manufacturers
The manufacturing and services zone may help local suppliers enter segments now served by imports. Businesses will need technical capability, quality systems and procurement readiness to compete for oilfield orders.
The announcement does not provide product standards, local-content percentages or vendor qualification rules.
MSMEs and startups
Smaller companies may find opportunities in software, sensors, artificial intelligence, fabrication, engineering design, safety equipment and logistics. However, deepwater projects normally demand strict technical and financial qualifications.
MSMEs may need consortium arrangements, technology partners or approved-vendor status to participate in larger contracts.
Expected Outcomes and Their Conditions
The government has linked the scheme with several production and economic objectives:
- Addition of more than 600 million tonnes of oil equivalent to India’s hydrocarbon reserves.
- Expansion of the resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent.
- Increase in annual domestic production from about 62 MMTOE to 80 MMTOE.
- Potential reduction in crude oil imports by nearly Rs 1 lakh crore annually.
- Growth in domestic oilfield manufacturing and specialised employment.
These are policy targets, not guaranteed outcomes. The official announcement expressly makes the production and reserve results subject to exploration success.
Benefits for Participating and Compliant Businesses
The scheme may offer several practical benefits for businesses involved in offshore exploration, manufacturing, technology, engineering and support services.
- Partial risk-sharing may make eligible deepwater wells more financially viable.
- Expanded seismic coverage can improve geological assessment and investment decisions.
- Reprocessed National Data Repository information may help operators identify offshore prospects.
- Shared production infrastructure can reduce duplication of high-cost facilities.
- Domestic manufacturing zones may reduce dependence on imported equipment and repair services.
- Increased exploration activity can create longer-term work for engineering, technology and logistics providers.
- Indian manufacturers may gain experience in specialised offshore supply chains.
- Transparent implementation guidelines could attract partnerships between Indian and international companies.
Practical Challenges
The scheme cannot eliminate all risks associated with offshore exploration.
Businesses may still face:
- High expenditure beyond the government-support cap.
- Dry-well and unsuccessful-exploration risk.
- Long periods between exploration and commercial production.
- Shortage of specialised rigs, vessels and technical personnel.
- Dependence on imported deepwater technology.
- Complex environmental, maritime and safety approvals.
- Uncertainty until detailed eligibility and disbursement rules are issued.
- Coordination challenges for shared infrastructure.
- Strict technical and financial conditions in future tenders.
Is the Scheme Necessary or an Additional Burden?
The risk-sharing model responds to a genuine commercial problem. A single deepwater well may require an investment of USD 125-150 million, while the result remains uncertain. Public support for data and drilling can encourage exploration that might otherwise be delayed.
Common infrastructure can also improve the viability of discoveries that are too small to support standalone facilities. Domestic manufacturing may reduce foreign-exchange outflow and strengthen the local supply chain.
The scheme may still create administrative work. Operators seeking support are likely to face technical review, cost verification, monitoring and reporting conditions once detailed guidelines are issued. These controls would be reasonable for public funding but could increase project documentation and audit requirements.
On balance, the scheme offers useful risk-sharing without removing commercial discipline. Its success will depend on clear eligibility rules, timely decisions, transparent project selection and coordination between operators and government agencies.
Business opportunities under the Samudra Manthan scheme
Samudra Manthan may create opportunities across the offshore energy value chain:
- Seismic survey and geophysical-data contracts.
- Artificial intelligence tools for geological interpretation.
- Deepwater drilling and well-engineering services.
- Offshore vessels, marine logistics and port support.
- Subsea systems, pipes, valves and specialised equipment.
- Fabrication, repair and maintenance facilities.
- Shared production and evacuation infrastructure.
- Environmental studies and marine-risk assessments.
- Technical training and workforce development.
- Digital project monitoring and data-management services.
- Support from a government tender consultant for reviewing procurement requirements and bid documentation.
- Joint ventures between Indian manufacturers and global technology companies.
The size and timing of these opportunities will depend on future tenders, project approvals and implementing guidelines.
What Businesses Should Review Now
Businesses planning to take part in offshore projects should start preparing now, while waiting for the detailed rules and business opportunities under the Samudra Manthan scheme.
- Monitor official implementation guidelines. Track the Ministry of Petroleum and Natural Gas, Directorate General of Hydrocarbons and relevant public-sector operator portals.
- Do not assume eligibility from the Cabinet release. Wait for the definition of eligible operators, wells, basins and expenditure.
- Review existing contracts and block obligations. Operators should check whether proposed wells fit their revenue-sharing contract, production-sharing contract or other contractual work programme.
- Prepare technical and financial capacity records. Future proposals may require evidence of drilling experience, financial strength and risk-management capability.
- Map project approvals early. Offshore projects may require separate environmental, safety, maritime and petroleum-sector approvals.
- Assess supply-chain readiness. Manufacturers should examine product quality, testing, vendor registration and technical qualification requirements.
- Evaluate partnership options. Indian businesses may need technology partners, consortium members or specialist contractors for deepwater work.
- Separate confirmed support from expected opportunities. Investment decisions should be based on final scheme rules and project documents.
Risks and Mistakes to Avoid
Businesses should avoid treating the Rs 84,084 crore outlay as a direct subsidy available on demand.
Other risks include:
- Assuming that every offshore well qualifies for 50% support.
- Treating Rs 675 crore as a fixed payment instead of a maximum per-well cap.
- Incurring expenditure before checking eligible-cost and approval conditions.
- Assuming that scheme support replaces existing licences or clearances.
- Relying only on news reports instead of final government guidelines.
- Claiming reserve or production targets as guaranteed results.
- Preparing bids without checking technical, financial and contractual criteria.
- Entering supply commitments before project procurement is confirmed.
What to Expect Next
The next practical stage should involve detailed implementation arrangements from the Ministry of Petroleum and Natural Gas or its designated agencies.
Industry participants should watch for:
- Operational and financial-support guidelines.
- Definitions of eligible drilling expenditure.
- Operator and project-selection conditions.
- Basin-specific infrastructure plans.
- Tender notices for seismic surveys and technology services.
- Locations and development models for manufacturing zones.
- Monitoring, reporting and audit requirements.
- Rules governing shared infrastructure access.
These are reasonable implementation areas to monitor. The Cabinet release does not announce their publication dates or final contents.
How Corpseed Can Help
Corpseed can provide regulatory compliance services and commercial support to exploration operators, contractors, manufacturers and oilfield service companies preparing for opportunities under Samudra Manthan.
Relevant support may include:
- Reviewing future scheme guidelines and assessing eligibility.
- Tracking government tenders and procurement notices.
- Providing tender compliance services and technical bid consulting.
- Business registration and market entry regulatory services for companies entering the sector.
- Environmental clearance consultant support for identifying applicable environmental permissions and project requirements.
- Business licence registration services for setting up relevant business operations.
- Mapping licences, environmental permissions and sectoral approvals.
- Reviewing consortium, joint-venture and vendor documentation.
- Conducting a compliance gap assessment before tender participation.
- Providing compliance advisory services for ongoing regulatory and documentation requirements.
- Supporting technical documentation and ongoing compliance management.
Professional support cannot guarantee financial assistance or contract selection. It can help businesses identify applicable requirements, reduce documentation gaps and prepare stronger, compliant submissions.
Businesses planning to participate in offshore exploration, manufacturing or oilfield service tenders can consult Corpseed for focused regulatory compliance services and bid-readiness support.
Final Takeaway
The Samudra Manthan offshore exploration scheme provides an Rs 84,084 crore Phase-I framework for seismic data, 60 deepwater wells, common infrastructure and domestic oilfield manufacturing through 31 March 2031.
It creates major commercial possibilities but does not yet provide a complete application or compliance process. Operators and suppliers should monitor official guidelines, verify eligibility and review existing regulatory duties before making investment or bidding decisions.
About the Author
Parul Bohral
Legal Content WriterParul Bohral, a BALLB graduate and experienced legal researcher and content writer with expertise in various legal areas, including corporate law and intellectual property. I have gained valuable experience in esteemed legal environments, where I have strengthened my research skills, allowing me to approach legal writing with precision and depth.
As a legal content writer, I am committed to delivering work that not only informs but also engages readers. By staying informed about the latest trends in content marketing and regulatory developments, I ensure that my writing remains sophisticated and meets industry standards. My dedication to thorough research enables me to craft content that is both insightful and impactful.