Samudra Manthan guidelines: Centre to fund up to half of risky deepwater wells and recover it from winners
Key facts
- The Centre will pay up to 50% of the cost of deepwater exploration wells under its ₹84,084 crore Samudra Manthan scheme.
- The scheme backs 60 wells in waters deeper than 400 metres. Only state-run firms, or consortia they lead, can apply.
- If a well strikes oil or gas, the money is recovered after seven years of production or once 50% of costs are recouped.
- If a well finds nothing, the State absorbs the loss.
Why it matters
[Policy] This is a new way to share exploration risk. The State carries the early geological risk and keeps a claim on any upside. The scheme runs till FY2030-31. It aims to cut India's heavy reliance on imported oil and gas. Only blocks awarded under the Revenue Sharing Contract regime qualify. Expect questions on upstream and downstream, ONGC and Oil India, and energy security.