Modi announces ₹84,084 crore Samudra Manthan scheme to reduce hydrocarbon imports by FY2030-31
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
Prime Minister Narendra Modi announced the ₹84,084 crore Samudra Manthan scheme to reduce India's hydrocarbon import reliance by FY2030-31.
Background
The scheme provides up to 50% funding for 60 deepwater wells (capped at ₹675 crore each) and 100% for four stratigraphic wells (capped at ₹1,350 crore each). It targets adding over 600 million tonnes of oil equivalent to reserves, with the government absorbing early geological risks and recovering costs from future revenue.
Facts for Prelims
- SchemeSamudra Manthan scheme outlay is ₹84,084 crore for hydrocarbon exploration.
- FactDeepwater wells are defined as deeper than 400 metres; ultra-deepwater is deeper than 1,500 metres.
- FactThe scheme covers 60 deepwater/ultra-deepwater wells and 4 stratigraphic wells.
- BodyOnly state-run firms or consortia led by them are eligible for the scheme.
- FactThe scheme excludes development wells and sidetrack well costs.
For Mains
Q. Discuss how the Samudra Manthan scheme addresses India's energy security challenges while balancing fiscal risks and geological uncertainties in hydrocarbon exploration.
Dimensions to cover in your answer
- Risk-sharing mechanism: Government absorbs initial geological risk while ensuring revenue recovery from successful discoveries.
- Eligibility constraints: Exclusion of private-led consortia and older production-sharing blocks to prioritize state-led strategic interests.
- Fiscal sustainability: Use of milestone-based payments and non-indexed repayment clauses to manage public expenditure.
Keywords: Energy Security · Hydrocarbon Exploration · Risk Mitigation · Fiscal Policy · Strategic Autonomy
More Economy notes
- FPIs withdraw ₹48,056 crore from Indian equities as cumulative outflows hit ₹3.08 lakh crore · 25 October 2026
- Sebi official Pandey announced plans to deepen capital markets by addressing parallel clearing costs · 25 October 2026
- Tamil Nadu CM Vijay slashes aviation turbine fuel VAT to 1% at state airports · 25 October 2026
- Vaishnaw assures Andhra Pradesh support for semiconductor design, manufacturing and AI · 25 October 2026
- Minister of Transport and BC Welfare announces TGSRTC will retrofit 250 diesel buses · 24 October 2026
- Modi to inaugurate Arvind Limited garment facility and RBI Data Centre in UP, Odisha · 24 October 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.