India launches ₹84,084 crore Samudra Manthan scheme to share deepwater drilling costs

India unveiled operational rules for the ₹84,084-crore Samudra Manthan initiative, designed to cut reliance on imported hydrocarbons by sharing the financial risk of deepwater and ultra-deepwater oil and gas exploration. The Ministry of Petroleum and Natural Gas will fund up to 56 exploratory wells and four stratigraphic wells, covering up to 50 % of costs for the former (with a ₹675 crore ceiling) and the full cost of the latter (capped at ₹1,350 crore).

Eligibility is restricted to state-owned enterprises or consortia they lead, and only blocks under the Revenue Sharing Contract regime qualify. Disbursements occur in two stages linked to drilling depth and well-completion milestones, with the government recouping its outlay after seven years of commercial production or once 50 % of exploration and development expenses are recovered. A secondary track provides viability-gap funding for shared infrastructure such as subsea manifolds and pipelines, initially targeting the Mahanadi basin and Kutch, while a third track supports oil-and-gas manufacturing zones. Oversight is provided by an empowered steering committee chaired by the Cabinet Secretary and an executive committee led by the petroleum secretary, with the Directorate General of Hydrocarbons acting as the implementing agency.