Page 62 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

• Substitution of over 316 lakh metric tonnes of crude oil imports;
• Reduction of more than 950 lakh metric tonnes of CO2 emissions; and
• Over ?1.66 lakh crore in payments to farmers and distillers, creating a stable domestic market

for agricultural produce.
• The purpose of ethanol blending is to reduce India's dependence on imported crude oil, which

still meets nearly 88% of our oil requirement. It is an insurance policy against global oil shocks
and not a day-to-day price competition.

Ethanol blending isn't a taxpayer subsidy. It's India's energy insurance and it has already delivered
when the crisis hit.

7. Cabinet approves 'Samudra Manthan' (National Offshore Exploration Scheme) with an outlay of
Rs.84,084 crore

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved 'Samudra
Manthan' – the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of
Petroleum & Natural Gas with an approved outlay of Rs.84,084 crore for implementation up to FY
2030–31.

The Scheme translates the Prime Minister's vision, articulated from the Red Fort on Independence
Day 2025, of a modern-day Samudra Manthan to unlock India's vast offshore energy potential. It
marks a landmark step towards strengthening India's energy security, accelerating domestic
exploration and production, promoting technological leadership, and advancing the vision of Viksit
Bharat.

The Scheme encompasses a comprehensive set of interventions across the offshore exploration value
chain. It provides for large-scale acquisition, processing and interpretation of high-quality seismic
data, accelerated deepwater and ultra-deepwater exploratory drilling, scientific drilling in frontier
basins, development of common offshore production and evacuation infrastructure, and
establishment of an integrated Oil & Gas Manufacturing and Services Zone. It also includes dedicated
provisions for digital programme management, capacity building, technology adoption, stakeholder
engagement and international outreach, creating an integrated ecosystem to accelerate offshore
exploration and production in the country.

Samudra Manthan is expected to catalyse reserve accretion of over 600 Million Metric Tons of Oil
Equivalent (MMTOE), substantially increase offshore exploration activity, promote higher domestic
oil and gas production, generate large-scale employment, strengthen indigenous manufacturing
under Make in India and Atmanirbhar Bharat, and foster a globally competitive ecosystem for offshore
technologies and services. The Scheme is also expected to stimulate significant investments across
the exploration and production value chain, creating long-term opportunities for industry, innovation
and economic growth.

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