New Delhi | 28 October 2026
India’s push to strengthen domestic oil and natural gas production is gaining momentum with the government’s operational framework for the ₹84,084 crore Samudra Manthan – National Offshore Exploration Scheme. The programme will provide financial support for high-risk deepwater and ultra-deepwater exploration, potentially reducing the cost and risk of offshore exploration for eligible energy companies.
Under the scheme, the government will support up to 50% of the cost of eligible deepwater exploratory wells, subject to a ceiling of ₹675 crore per well. Four stratigraphic wells will be eligible for support of up to 100% of their cost, capped at ₹1,350 crore per well. The scheme is designed to encourage exploration in frontier offshore basins where drilling requires substantial capital and advanced technology.
Strategic Significance for GAIL
For GAIL (India) Limited, India’s largest integrated natural gas company, the development is important from the perspective of long-term domestic gas availability and energy security. Increased domestic exploration and production could gradually strengthen the supply ecosystem supporting the country’s expanding gas transmission, city-gas and industrial demand.
The government expects the initiative to improve the economics of exploration in deepwater and ultra-deepwater areas, including regions such as the Krishna-Godavari, Cauvery, Mahanadi and Andaman basins.
GAIL Also Looks to Diversify LNG Supplies
Alongside the domestic gas-security push, GAIL is pursuing international diversification of its LNG portfolio. The company has been reported to be in discussions with several US LNG export projects and is considering a minority investment in one project as part of its strategy to secure long-term supplies. GAIL already has an LNG portfolio of around 16.56 MMTPA, sourced from multiple markets.
This combination of domestic infrastructure and overseas LNG sourcing reflects the changing strategy of India’s gas sector: expanding indigenous resources while simultaneously diversifying international supply channels.
GAIL’s Broader Energy Transition
GAIL is also expanding beyond conventional natural gas. Recent initiatives include collaboration with Petronet LNG on energy-sector innovation, exploration of renewable-energy opportunities and development of alternative fuels such as compressed biogas.
The company’s latest corporate updates also highlight continued activity around clean energy, LNG and gas infrastructure.
The Worldonomics Times Insight
The Samudra Manthan framework could become an important catalyst for India’s domestic gas economy. By sharing a portion of exploration risk, the government is attempting to make technically difficult offshore projects more commercially viable.
For GAIL, greater domestic gas availability combined with diversified LNG imports could provide a stronger foundation for expanding India’s natural-gas network. The larger objective is clear: reduce import vulnerability, strengthen energy security and build a more resilient gas economy for India’s growth.
