Why in News?
The Union Cabinet approved the National Offshore Exploration Scheme, ‘Samudra Manthan’, with a total outlay of ₹84,084 crore. The scheme will run until FY 2030-31 and is under the Ministry of Petroleum and Natural Gas.
What does the scheme include?
The scheme allocates ₹43,200 crore for drilling 60 deepwater exploration wells. The government will cover up to 50% of eligible drilling costs, with a maximum subsidy of ₹675 crore per well.
The goal is to catalyze reserves exceeding 600 million metric tonnes of oil equivalent (MMTOE), which would significantly boost India's domestic hydrocarbon production.
ONGC has already commenced drilling the first deepwater well in the Mahanadi basin under this mission.
Why is this important for India?
India is the 3rd largest consumer of energy and oil globally, yet it relies heavily on imports. This scheme is a strategic push to reduce import dependency through Open Acreage Licensing Policy (OALP) and enhanced domestic exploration.
ONGC, India's largest crude oil and natural gas company, is the key implementing agency. It holds Maharatna status and is headquartered in New Delhi.
Exam Connect
Samudra Manthan → Ministry of Petroleum and Natural Gas
ONGC → Maharatna PSU, established in 1956
OALP → Policy to accelerate hydrocarbon exploration in India