India Unveils Ambitious ₹84,700 Crore Roadmap to Boost Domestic Oil and Gas Output
In a significant move to reduce its import dependency and bolster national energy security, Union Petroleum Minister Hardeep Singh Puri has announced a massive financial support package for oil and gas exploration. Under the newly launched ‘Samudra Manthan Yojana,’ the government has earmarked ₹84,700 crore to catalyze drilling activities across the country. This fiscal injection is designed to accelerate the exploration of 150 wells over the next three years, marking one of the most aggressive expansion phases in India’s hydrocarbon sector.
Expanding the Exploration Frontier
The core of this strategy involves a massive expansion of India’s operational footprint. Minister Puri confirmed that the government has opened up 1 million square kilometers of sedimentary basins for exploration. This shift aims to unlock untapped potential in regions that were previously under-explored or restricted. By providing access to such a vast expanse, the Ministry intends to attract both domestic and international players to help bridge the gap between India’s energy consumption and its indigenous production.
In tandem with the Samudra Manthan Yojana, the government has placed significant acreage on the table. Under the Open Acreage Licensing Policy (OALP) Rounds 10 and 11, more than 2.96 lakh square kilometers have been offered to prospective explorers. This aggressive bidding framework is intended to streamline regulatory hurdles and create a more conducive environment for investors looking to participate in India’s energy growth story.
Scaling Up Operational Capacity
The data from the previous fiscal year reflects a clear trend toward intensification. In 2025–26, India completed the drilling of 674 wells, a figure comprised of 131 exploratory wells and 543 development wells. These figures demonstrate the sector’s current momentum, which the government now seeks to multiply through the new funding package.
Beyond traditional oil and gas, the government is diversifying its energy portfolio. Minister Puri also oversaw the signing of eight contracts under the 2025 and 2026 Coal Bed Methane (CBM) bid rounds. By integrating CBM into the broader exploration agenda, India is signaling a comprehensive approach to securing gas supplies, which are critical for the country’s transition toward a cleaner, gas-based economy.
Strategic Vision: India Hydrocarbon Outlook 2026
To provide a structured roadmap for stakeholders, the Ministry unveiled the India Hydrocarbon Outlook 2026. This document serves as a strategic blueprint, outlining the government’s vision for the sector’s evolution over the coming years. It emphasizes the need for technological integration, streamlined permitting processes, and a sustained increase in drilling intensity.
For a nation that relies heavily on global markets for its crude oil and natural gas requirements, these initiatives represent a tactical pivot. By incentivizing exploration in high-potential, deep-water, and unconventional basins, the Ministry is aiming to transform India from a consumer-centric energy market into a more self-reliant entity. With the influx of ₹84,700 crore, the oil and gas industry is poised for a period of rapid infrastructure development, which officials believe will be instrumental in insulating the Indian economy from the volatility of global energy markets in the near future.
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