India Unveils $10 Billion Plan to Boost Domestic Oil and Gas Production
The Indian government has approved an ambitious plan to boost domestic oil and gas production by investing in offshore exploration. The 'Samudra Manthan' National Offshore Exploration Scheme, with a total outlay of Rs 84,084 crore (approximately USD 10 billion), aims to accelerate exploration in deepwater and ultra-deepwater areas.
The scheme will provide support of up to Rs 650 crore for each well drilled in these regions. Over half the total outlay, or Rs 43,200 crore, will be allocated over five years through FY2031 to support deepsea drilling, which comes with high costs and significant geological risks.
India's reliance on imported crude oil has increased from 77% to 88% over the past decade. The government expects the scheme to help discover more than 600 million tonnes of oil equivalent (MMTOE) of hydrocarbon reserves and increase domestic production, generating employment and attracting investments in the process.
The 'Samudra Manthan' scheme builds on recent upstream sector reforms, including opening offshore acreage for exploration, modernizing the legislative framework, and strengthening the National Data Repository. It was first outlined by Prime Minister Narendra Modi during his Independence Day address in 2025.