Why in News?
The Union Cabinet approved the National Offshore Exploration Scheme, ‘Samudra Manthan’, with a total outlay of ₹84,084 crore on July 31, 2026. 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