Samudra Manthan Scheme Details Funding and Recovery Rules for Deepwater Exploration Wells

Key facts

• The Samudra Manthan scheme aims to support 60 deepwater and ultra-deepwater wells to reduce India's reliance on imported hydrocarbons.
• For exploratory wells, the government provides up to 50% of the actual cost, capped at Rs 675 crore per well, while four stratigraphic wells receive up to 100% funding, capped at Rs 1,350 crore each.
• The government's recovery of aid begins after seven years of commercial production or when the operator has recouped 50% of exploration and development costs, whichever comes first.
• The scheme is restricted to blocks awarded under the Revenue Sharing Contract regime since 2016 and must be led by state-run firms or consortia.
• The Samudra Manthan scheme is scheduled to run through FY2030-31, with Phase I spending occurring from FY 2027-28 to FY2030-31.
• A second track of the scheme provides viability gap funding for shared infrastructure, such as subsea manifolds and trunk pipelines, initially targeting the Mahanadi basin.