Union Cabinet approves ₹84,084cr 'Samudra Manthan' scheme: What is it?
What's the story
The Union Cabinet has approved an allocation of ₹84,084 crore for the 'Samudra Manthan' scheme. It is aimed at boosting India's offshore exploration efforts. The funds will be used until the fiscal year 2030-31 and are divided into four main components. The largest chunk of this allocation, ₹43,200 crore, is dedicated to drilling 60 deepwater exploration wells.
Investment breakdown
Scheme expected to catalyze over 600 MMTOE reserves
The 'Samudra Manthan' scheme also includes an allocation of ₹28,534 crore for offshore data acquisition.
Another ₹10,000 crore is earmarked for developing common offshore infrastructure hubs to facilitate the commercialization of discoveries.
Finally, the establishment of oil and gas manufacturing and services zones has been allocated ₹2,000 crore.
These initiatives are expected to catalyze reserves exceeding 600 million metric tons of oil equivalent (MMTOE).
Energy security
Addressing challenges of aging oil and gas fields
The 'Samudra Manthan' scheme is a major push toward enhancing India's domestic energy security.
Hydrocarbon exploration is capital-intensive and has a long gestation period, but it is critical for a country's energy independence.
The scheme seeks to shift growth toward offshore exploration as a way to tackle challenges posed by aging oil and gas fields.
Economic growth
Potential to boost private investments
The new scheme is expected to create long-term opportunities for industry, innovation, and economic growth.
Rajnish Gupta, Partner for Tax and Economic Policy at EY India, said investments in large-scale seismic data acquisition and drilling exploratory wells in deep and ultra-deep waters will reduce geological uncertainty.
He added that good results could catalyze greater private investments in the sector.