Cabinet approves ₹84,000 crore for Samudra Manthan offshore exploration and extends PM-Kisan scheme

Livemint - Economy · 3 Aug 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

The Union Cabinet approved ₹84,000 crore for the Samudra Manthan scheme to boost deep-sea oil and gas exploration, aiming to reduce India's energy import dependence, while also extending the PM-Kisan scheme for five years with ₹3.15 trillion allocation to support rural incomes.

Key points

Samudra Manthan: The National Offshore Exploration Scheme aims to unlock India’s offshore hydrocarbon reserves through deepwater drilling, seismic surveys, and infrastructure development, with a budget of ₹84,008 crore over five years.

Energy Security: India imports 85% of its crude oil and 50% of natural gas, making domestic exploration critical for reducing import dependence and enhancing energy security.

Exploration Incentives: The scheme reimburses deepwater drilling costs, funds 3D seismic surveys, and supports scientific drilling in frontier basins to de-risk exploration and attract private investment.

Previous Reforms: The government has implemented policies like the Open Acreage Licensing Policy (OALP) and Hydrocarbon Exploration and Licensing Policy (HELP) to liberalize the sector, but deepwater exploration remains underdeveloped.

PM-Kisan Extension: The cabinet extended the PM-Kisan scheme till FY31 with ₹3.15 trillion outlay, providing ₹6,000 annually to 11 crore farmers to support rural incomes and agricultural investment.

[GS3-Economy] The scheme’s direct benefit transfer (DBT) mechanism injects liquidity into rural households, reducing dependence on informal credit and stimulating consumption in agrarian regions.

Political Economy: PM-Kisan’s extension reflects both economic welfare objectives and political engagement with rural voters, reinforcing DBT as a key instrument of governance.

Way Forward: India should enhance offshore exploration by leveraging international collaborations, incentivizing private sector participation, and integrating climate adaptation into energy policies, while ensuring PM-Kisan’s benefits reach marginalized farmers through robust monitoring.

Key terms

Hydrocarbon Exploration and Licensing Policy (HELP)

Introduced in 2016, HELP replaced the profit-sharing model with a revenue-sharing mechanism for oil and gas exploration. It includes uniform licensing, market-linked pricing, and open acreage bidding to streamline operations and boost domestic production, critical for India’s energy security.

Samudra Manthan

A ₹84,000 crore central scheme to accelerate deep-sea oil and gas exploration in India, focusing on deepwater drilling, seismic surveys, and infrastructure development. It aims to reduce India’s energy import dependence by boosting domestic hydrocarbon production, aligning with the government’s energy security goals under the Hydrocarbon Exploration and Licensing Policy (HELP).

PM-Kisan

Pradhan Mantri Kisan Samman Nidhi is a farmer income support scheme providing ₹6,000 annually to eligible farmer families in three instalments. It aims to stabilize rural incomes, reduce agrarian distress, and stimulate rural consumption, forming a key part of India’s agricultural welfare architecture under Direct Benefit Transfer (DBT).

Open Acreage Licensing Policy (OALP)

A policy under India’s Hydrocarbon Exploration and Licensing Policy (HELP) framework, allowing companies to bid for oil and gas blocks year-round. It replaced the New Exploration Licensing Policy (NELP) to simplify licensing, attract private investment, and enhance domestic exploration efficiency.