The government will pay up to half the cost of risky deepwater exploration wells under its ₹84,084 crore Samudra Manthan scheme, but expects to be repaid from revenue if a well finds oil or gas. If it finds nothing, the State absorbs the loss.
Funding comes in four equal 25% tranches tied to physical progress of 25%, 50%, and 75%, and then commissioning. The Infrastructure Appraisal Board is to shortlist locations within 60 days of its first meeting.
The hub must operate on “fair and non-discriminatory access” under the PNG Rules, with unused capacity offered to others. The scheme can be combined with BHAVYA, a separate industrial-infrastructure scheme run by the Commerce Ministry’s trade promotion department, but the guidelines say any shortfall there “shall not automatically create additional liability” for Samudra Manthan. That recovery clause, set out in newly issued operational guidelines, is the scheme’s central bargain — the government carries early geological risk and keeps a claim on any upside. The government financial support is intended to reduce the upfront burden of exploration while allowing the State to recoup its investment when a project succeeds. Operators will still bear costs above the support caps and face the risk of losing eligibility if they fail to meet work commitments or pay penalties instead of completing committed drilling. A second track of the scheme offers viability gap funding for shared infrastructure that can tie several small or stranded discoveries into one production system. Eligible items include subsea manifolds, trunk pipelines, central processing platforms and shared floating production units. Support is initially planned for the Mahanadi basin, with token funding for Kutch. Viability gap funding would support shared infrastructure for two or more field developments, including subsea manifolds, trunk pipelines, central processing platforms and shared floating production units. A joint venture or special-purpose vehicle of participating operators would own and build the hub. Rivals must agree on equity, ownership, and capacity commitments before construction starts. The first tranche requires financial closure, executed construction contracts, and operator commitment agreements. Receiving the money does not reduce operators’ safety, environmental or decommissioning obligations. A developer, which could be a company, consortium or joint venture, must secure land and clearances, and then market the zone to tenants. States are invited to help with land, approvals, and utilities.
