For Prelims: Open Acreage Licensing Policy (OALP), Directorate General of Hydrocarbons (DGH), Exclusive Economic Zone (EEZ), Scheme Name, Total Outlay, Offshore Exploration Allocation, Number of Deep-Sea Exploratory Wells, Cost Subsidy per Well
For Mains: Energy security, Import dependence reduction, Deep-sea exploration, Hydrocarbon exploration, De-risking investment
Source:
Hindustan
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- Samudra Manthan scheme outlay is ₹84,084 crore.
- Government will cover up to 50% of drilling cost per well, max ₹675 crore.
- Bidding for deep-sea blocks will happen every month under special OALP.
- The scheme was approved by the Union Cabinet on 31 July 2026.
- Nodal agency is the Directorate General of Hydrocarbons (DGH).
Why in the news?
India has approved the 'Samudra Manthan' scheme worth ₹84,084 crore to boost deep-sea and ultra-deep-sea oil and gas exploration. Under a special Open Acreage Licensing Policy (OALP), companies can bid monthly, and the government will cover up to 50% of the drilling cost for eligible exploratory wells, capped at ₹675 crore per well.
Summary
- The Samudra Manthan scheme, approved by the Union Cabinet on 31 July 2026, allocates ₹43,200 crore for offshore exploration activities including drilling 60 deep-sea exploratory wells.
- Under the special OALP, a 21-day Expression of Interest (EOI) period starts on the 1st of every month, allowing companies to bid 12 times a year.
- The government will provide financial support of up to 50% of drilling cost for eligible wells, with a maximum of ₹675 crore per well.
Highlights
Samudra Manthan Scheme
A ₹84,084 crore government scheme to promote deep-sea oil and gas exploration by subsidising up to 50% of drilling costs for eligible wells.
Monthly Bidding Cycle
Under a special OALP, companies can bid every month with a 21-day EOI period starting on the 1st, enabling 12 bidding rounds per year.
Offshore Exploration Push
The scheme allocates ₹43,200 crore for offshore activities including drilling 60 deep-sea exploratory wells to reduce India's oil import dependence.
Background
India imports over 80% of its crude oil requirements, making energy security a top national priority. Deep-sea and ultra-deep-sea blocks in India's Exclusive Economic Zone (EEZ) hold significant hydrocarbon potential but remain largely unexplored due to high costs and technological challenges. The Samudra Manthan scheme aims to de-risk these investments by providing financial incentives and streamlining the licensing process.
Key Analysis and Impact
The monthly bidding cycle under a special OALP framework is a significant procedural reform. It replaces the periodic, larger bid rounds with a continuous, fast-track process, giving companies flexibility to bid as per their readiness. The 50% cost subsidy (up to ₹675 crore per well) directly addresses the high capital expenditure in deep-sea drilling. The scheme's ₹43,200 crore allocation for 60 wells indicates a focused, time-bound approach. Success could reduce India's import bill and enhance self-reliance in the energy sector.
Way Forward
The success of Samudra Manthan will depend on the participation of both domestic and international oil companies. The government must ensure transparent and swift block allocation. Technological partnerships for deep-sea drilling and environmental safeguards will be critical. The scheme aligns with the government's broader goal of reducing energy import dependence and achieving energy security by 2047.
Samudra Manthan scheme key features
| Feature | Detail |
|---|---|
| Total outlay | ₹84,084 crore |
| Offshore exploration allocation | ₹43,200 crore |
| Number of deep-sea wells | 60 |
| Drilling cost subsidy | Up to 50% |
| Max subsidy per well | ₹675 crore |
| Bidding frequency | Monthly (12 times a year) |
Background GK
Textbook concepts you need to understand this news
- Open Acreage Licensing Policy (OALP)
- A policy under which companies can bid for exploration blocks throughout the year, instead of waiting for a government-notified bidding round. It allows companies to select areas of interest and submit an Expression of Interest (EOI) at any time.
- Directorate General of Hydrocarbons (DGH)
- The technical arm of the Ministry of Petroleum and Natural Gas, responsible for regulation and promotion of the oil and gas sector in India.
- Exclusive Economic Zone (EEZ)
- A sea zone over which a state has special rights regarding the exploration and use of marine resources, extending up to 200 nautical miles from its coast.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: Samudra Manthan scheme outlay: ₹84,084 crore; offshore allocation: ₹43,200 crore; 60 deep-sea wells; subsidy up to 50% or ₹675 crore per well
- Nodal Body: Directorate General of Hydrocarbons (DGH), under Ministry of Petroleum and Natural Gas
- Legal Point: Open Acreage Licensing Policy (OALP)
Don't make this mistake!
Examiners may swap the total scheme outlay (₹84,084 crore) with the offshore exploration allocation (₹43,200 crore) or confuse the number of wells. They may also ask about the subsidy percentage (50%) versus the per-well cap (₹675 crore).
Write these in mains answers
- Energy security, Import dependence reduction, Deep-sea exploration, Hydrocarbon exploration, De-risking investment
Stuck? Get it in one tap
India wants to find oil and gas deep under the sea to reduce imports. The government has launched the Samudra Manthan scheme worth ₹84,084 crore. It will pay half the cost of drilling exploratory wells, up to ₹675 crore per well. Companies can bid for blocks every month instead of waiting for a yearly round.
- Samudra Manthan scheme outlay is ₹84,084 crore.
- Government will cover up to 50% of drilling cost per well, max ₹675 crore.
- Bidding for deep-sea blocks will happen every month under special OALP.
- The scheme was approved by the Union Cabinet on 31 July 2026.
- Nodal agency is the Directorate General of Hydrocarbons (DGH).
- Economy: Energy security and oil exploration
- Geography: Ocean resources and EEZ
Related concepts: Open Acreage Licensing Policy (OALP), Directorate General of Hydrocarbons (DGH), Exclusive Economic Zone (EEZ)
Practice questions
Pick an answer, then read the explanation.
- Q1Medium
Which agency is the nodal body for implementing the Samudra Manthan scheme for deep-sea oil and gas exploration?
Explanation: The DGH, under the Ministry of Petroleum and Natural Gas, is the nodal agency. ONGC is an exploration company, not the regulator. The Ministry of Finance approves funds but does not implement the scheme. NITI Aayog is a policy think tank.
- Q2Hard
Consider the following statements regarding the Samudra Manthan scheme:
- 1.The scheme provides a 50% subsidy on the cost of drilling exploratory wells, with a cap of ₹675 crore per well.
- 2.Bidding for blocks under the special OALP will happen once a year.
- 3.The scheme was approved by the Union Cabinet in July 2026.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: the government will cover up to 50% of drilling costs with a maximum of ₹675 crore per well. Statement 2 is incorrect: bidding will happen every month (12 times a year), not once a year. Statement 3 is correct: the Union Cabinet approved the scheme on 31 July 2026.
- Q3Medium
What is the total outlay of the Samudra Manthan scheme approved by the Union Cabinet?
Explanation: The total outlay of the Samudra Manthan scheme is ₹84,084 crore. ₹43,200 crore is the allocation specifically for offshore exploration activities.
- Q4Medium
What is the primary objective of the Samudra Manthan scheme?
Explanation: The scheme aims to boost domestic hydrocarbon production from deep-sea blocks, reducing India's reliance on imported crude oil. It does not focus on onshore refineries, import subsidies, or tourism.
Frequently asked questions
1. What is the Samudra Manthan scheme?
The Samudra Manthan scheme is a ₹84,084 crore government initiative to boost deep-sea and ultra-deep-sea oil and gas exploration in India.
2. What incentives does the Samudra Manthan scheme offer to exploration companies?
The scheme offers a 50% subsidy on the drilling cost of eligible exploratory wells, capped at ₹675 crore per well, and allows monthly bidding under a special OALP.
3. When was the Samudra Manthan scheme approved?
The Union Cabinet approved the Samudra Manthan scheme on 31 July 2026.
4. Who is the nodal agency for implementing the Samudra Manthan scheme?
The Directorate General of Hydrocarbons (DGH) under the Ministry of Petroleum and Natural Gas is the nodal agency.
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- Original5 November 2026 · Read story
