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Government to fund 50% of deepwater well costs under Samudra Manthan scheme
The government will fund 50% of deepwater well costs under the Rs 84,084-crore Samudra Manthan scheme.
Key points
- The government will fund up to 50% of 56 exploratory wells and 100% of four stratigraphic wells under the Samudra Manthan scheme.
- Only state-run firms or consortia they lead can apply for the grants, which are limited to blocks awarded under the Revenue Sharing
- The scheme includes viability gap funding for shared infrastructure in the Mahanadi and Kutch basins to make stranded discoveries viable.
Why it matters. The scheme aims to reduce India's heavy reliance on imported hydrocarbons by absorbing early geological risks in deepwater exploration.
The Indian government launched the Rs 84,084-crore Samudra Manthan scheme following Prime Minister Narendra Modi's August 15, 2025 speech. Operational guidelines state the state will fund up to 50 per cent of 56 exploratory wells, capped at Rs 675 crore each, and 100 per cent of four stratigraphic wells up to Rs 1,350 crore each. Petroleum Secretary Neeraj Mittal claims the initiative could add over 600 million tonnes of oil equivalent to reserves.
Latest updates
Government to fund 50% of deepwater well costs under Samudra Manthan scheme
Under the Rs 84,084-crore Samudra Manthan scheme, the government will pay up to 50% of the costs for deepwater exploration wells. According to newly issued operational guidelines, the state will absorb losses if no resources are found. However, the government will recover its aid from revenues if the well successfully finds oil or gas. This mechanism allows the state to carry early geological risks while maintaining a claim on the upside.
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The Indian government will now co-fund high-risk deepwater oil and gas exploration under the ₹84,084-crore Samudra Manthan scheme. The Ministry of Petroleum and Natural Gas will pay for a portion of risky exploration wells and fund seismic mapping of offshore basins. The initiative also includes support for building shared production facilities. This policy aims to incentivise energy companies to explore challenging offshore terrains.