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Relevance: GS-III (Energy Security, Indian Economy, Mineral Resources) Source: Ministry of Petroleum and Natural Gas, 2026

1 · What is the news in simple words?

Every time there is a war in the Middle East, petrol and diesel prices in India threaten to shoot up. Why? Because India imports almost 90% of the crude oil it needs. To solve this heavy dependence, the government has launched a massive ₹84,084 crore scheme called ‘Samudra Manthan’.
Just like the mythological churning of the ocean for treasure, this scheme aims to churn India’s deep ocean waters to find hidden oil and natural gas. Drilling deep under the sea is extremely expensive and risky for private companies. Under this scheme, the government will step in to share that financial risk, helping companies map the seabed and drill new wells to secure India’s energy future.

2 · Why Do We Need This?

Step 1: Old Wells Drying Up
India’s legacy oil fields, like Mumbai High (discovered in 1974), are aging. Their oil production has dropped drastically over the years.
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Step 2: Dangerous Import Dependency
To meet our growing needs, our oil imports have jumped to an alarming 88.7%. This drains our national wealth and forex reserves.
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Step 3: Geopolitical Threats
Conflicts in the Middle East disrupt shipping routes. Ships have to take longer routes, making fuel more expensive for the common Indian.
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Step 4: The Deep-Sea Solution
To protect our economy, the government launched ‘Samudra Manthan’ to find our own oil in unexplored deepwater areas by sharing the heavy costs.

3 · How the Money Will Be Spent

Deep-Sea Drilling
Sharing the Risk
Drilling one well can cost up to $250 million. The government will pay for up to 50% of the cost for 60 new deepwater wells to encourage private companies.
Data Mapping
Seeing Underwater
Over ₹28,000 crore is set aside just for seismic mapping. This uses advanced technology to scan the ocean floor and find exactly where the oil is hidden.
Shared Infrastructure
Building Pipelines
If a company finds oil, bringing it to land is costly. The scheme will build shared offshore pipelines that multiple companies can use to transport their oil easily.
Make in India
Local Manufacturing
₹2,000 crore will be used to build local hubs that manufacture the heavy machinery and tools needed for offshore drilling, creating Indian jobs.

UPSC Prelims Quick Facts
Target Basins The primary focus areas for finding new oil are the deep waters of the Krishna-Godavari, Cauvery, Mahanadi, and Andaman regions.
OALP Policy The Open Acreage Licensing Policy (OALP) allows private companies to study geological data and select the exact ocean blocks they want to explore.
Economic Relief If successful, this scheme could save India nearly ₹1 lakh crore annually on its import bill, keeping our economy stable.
The Energy Bridge Even though India is moving towards solar and EVs, we still need fossil fuels for the next few decades. This scheme acts as a bridge until green tech fully matures.

MCQ Practice Question
Q. With reference to the ‘Samudra Manthan’ scheme recently approved by the Union Cabinet, consider the following statements:

  1. It aims to explore and harness offshore wind energy in India’s deepwater basins.
  2. Under this scheme, the government will subsidize up to 50% of the eligible deep-sea drilling costs for exploration wells.
  3. India’s current crude oil import dependency stands at over 85% of its total consumption.

Which of the statements given above is/are correct?
(a) 1 and 2 only    (b) 2 and 3 only    (c) 1 and 3 only    (d) 1, 2 and 3

Answer: (b) 2 and 3 only

  • Statement 1 — Incorrect (the trap): The ‘Samudra Manthan’ scheme is launched by the Ministry of Petroleum and Natural Gas for oil and gas exploration, not for renewable offshore wind energy.
  • Statement 2 — Correct: To de-risk investments for private players, the scheme will subsidize up to 50% of the deep-sea drilling costs.
  • Statement 3 — Correct: India’s crude oil import dependency has surged to approximately 88.7%, making schemes like this critical for energy security.
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