The Union Cabinet is likely to approve an Rs 84,000-crore deep-sea oil and gas exploration programme, marking one of India's biggest policy pushes to boost domestic hydrocarbon production and reduce its dependence on imported crude oil, according to sources.
The proposed incentive scheme is designed to attract both domestic and global energy companies to invest in deepwater and ultra-deepwater exploration, areas that have remained underexplored because of high costs and geological risks.
Under the proposal, the Centre may fund up to 50% of exploratory drilling costs, significantly improving the economics of high-risk offshore projects.
Sources said the scheme is expected to be rolled out before the conclusion of the ongoing deepwater block auction, providing an added incentive for companies evaluating participation in India's latest licensing round.
The initiative is part of the government's broader Samudra Manthan strategy to unlock India's offshore hydrocarbon potential through policy reforms, enhanced seismic data acquisition and accelerated exploration in frontier basins. Officials expect the programme to improve participation from global energy majors in future licensing rounds.
The move comes as India continues to rely on imports for more than 85% of its crude oil requirements, exposing the economy to volatile global energy prices and geopolitical disruptions.
Petroleum Secretary Pankaj Jain had earlier indicated that the programme was in its final stages, stating that the government was prepared to support high-risk exploration activities to encourage greater investment in offshore drilling.
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