New Delhi | July 28, 2026
The Central Government is preparing a landmark ₹80,000 crore financial package under the Samudra Manthan initiative (National Deepwater Exploration Mission) to attract foreign and domestic energy companies into India’s unexplored deepwater basins.
The proposal marks a paradigm shift in Indian energy policy by offering to directly co-fund exploratory drilling, effectively lowering entry barriers in high-cost offshore exploration.
Key Highlights of the Initiative
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Cost-Sharing Mechanism: The government plans to reimburse up to 50% of exploratory well drilling costs, subject to strict spending caps, and may offer partial funding for advanced 3D seismic surveys.
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Mitigating Upstream Risk: With deepwater well drilling costs ranging from ₹1,000 crore to over ₹1,200 crore, the direct subsidy aims to reduce capital risk for private and foreign operators.
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Geological Data Enhancement: Alongside financial backing, legacy offshore datasets are being reprocessed using modern processing technologies to provide clearer sub-surface mapping.
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OALP Block Bidding: To allow prospective investors to factor in the proposed incentives, the bid deadline for 18 deepwater and ultra-deepwater blocks under the Open Acreage Licensing Programme has been extended to September 17, 2026.
Industry Milestone
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ONGC Progress: State-owned ONGC has already spudded its initial deepwater exploratory well under the Samudra Manthan framework, signaling early operational momentum.
