The Union Cabinet is likely to approve an ₹84,000-crore deep-sea oil and gas exploration programme aimed at increasing domestic hydrocarbon production and reducing India's heavy reliance on imported crude oil, sources said.
The proposed incentive scheme is expected to encourage both Indian and global energy companies to invest in deepwater and ultra-deepwater exploration, segments that have remained largely underexplored because of high costs, technological challenges and geological risks.
According to sources, the Centre may bear up to 50 per cent of exploratory drilling costs, significantly improving the commercial viability of high-risk offshore projects. The financial support is expected to make participation more attractive for companies exploring India's offshore energy resources.
The scheme is likely to be rolled out before the conclusion of the ongoing deepwater block auction, offering an additional incentive to bidders evaluating participation in the latest round of hydrocarbon licensing.
The initiative forms part of the government's broader Samudra Manthan strategy, which seeks to unlock India's offshore oil and gas potential through policy reforms, expanded seismic surveys and accelerated exploration of frontier basins.
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Officials believe the programme could improve investor confidence and attract greater participation from international energy majors in future exploration rounds.
India currently imports more than 85 per cent of its crude oil requirement, making the country vulnerable to fluctuations in global oil prices and supply disruptions arising from geopolitical tensions. Increasing domestic production has therefore become a key policy priority for the government as it seeks to strengthen energy security and reduce the import bill.
The proposed programme is expected to complement recent reforms aimed at expanding exploration acreage, improving access to geological data and creating a more investor-friendly regulatory framework.
Petroleum Secretary Pankaj Jain had earlier indicated that the initiative was in its final stages, stating that the government was prepared to support high-risk exploration projects to encourage greater investment in offshore drilling.
If approved, the scheme would represent one of India's biggest policy interventions in the upstream oil and gas sector and could play a significant role in expanding domestic hydrocarbon production over the coming years.
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