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India will dig 60 oil wells in the sea; the government will spend Rs 650 crore on each well, know what the complete plan is.
Samudra Manthan Scheme: India is going to drill 60 deep oil and gas wells in the ocean. Learn about the "Samudra Manthan" scheme, why the government will spend ₹650 crore on each well, and how it will benefit the country.
India will extract its own oil from the sea
Samudra Manthan Scheme: India is now embarking on large-scale underwater oil and gas exploration to reduce its dependence on crude oil imports. The central government has approved Samudra Manthan. Under this scheme, 60 deepwater and ultra-deepwater wells will be drilled. The government will spend up to ₹650 crore per well to enable companies to explore for oil and gas without significant risk.
Why will ₹650 crore be spent?
Deep-sea oil and gas exploration is extremely expensive and risky. Often, even after spending crores of rupees, commercially viable reserves are not found. This is why the government will now bear a portion of this risk. Under the scheme, up to ₹650 crore will be provided for the cost of drilling a single well, encouraging private and foreign companies to invest in this sector.
What is the government's focus?
India imports more than 85% of its crude oil needs. This imposes a significant foreign exchange burden on the country each year. The government's focus is to reduce dependence on imports by increasing domestic production and strengthening the country's energy security. To achieve this, exploration for potential deep-sea oil and gas reserves will be accelerated.
In which areas will drilling take place?
This plan will involve exploration in India's deepwater regions, particularly the eastern and western offshore basins and ultra-deepwater areas. The government believes these areas may hold hydrocarbon reserves.
How will companies benefit?
This government plan will provide relief to private and foreign energy companies, in addition to ONGC. Lowering the cost of deep-sea drilling will allow more companies to invest in India's offshore blocks. If India's domestic crude oil and gas production increases, dependence on imports could decrease in the long run.
