1 Aug 2026ECONOMY3 questions

Churning the Ocean: A ₹84,084-Crore Bet That India's Missing Oil Lies Offshore

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Article summary

The Union Cabinet on 31 July 2026 approved Samudra Manthan, the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum and Natural Gas with an outlay of ₹84,084 crore for implementation up to FY 2030-31. The scheme funds large-scale acquisition, processing and interpretation of seismic data, accelerated deepwater and ultra-deepwater exploratory drilling, scientific drilling in frontier basins, common offshore production and evacuation infrastructure, and an integrated Oil and Gas Manufacturing and Services Zone. The Government expects it to catalyse reserve accretion of over 600 million metric tons of oil equivalent. The context is deteriorating: India's crude import dependence reached a record 88.7 per cent in 2025-26 while domestic crude output fell from 29.7 million metric tonnes in 2021-22 to 28 MMT. For an aspirant, the scheme is a case study in whether public spending can reverse a geological and investment deficit.

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recallTests whether you read the article and retained key facts.

applicationTests whether you can apply the concept to a new scenario.

analysisTests whether you can reason across multiple related facts.

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ECONOMYRecallEasy

Q1. The Samudra Manthan scheme approved in July 2026 is administered by which ministry?

AMinistry of Earth Sciences

BMinistry of Petroleum and Natural Gas

CMinistry of Ports, Shipping and Waterways

DMinistry of Mines

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ECONOMYApplicationMedium

Q2. The scheme's largest early component is seismic data acquisition rather than drilling. What is the strongest justification for the state funding this rather than leaving it to explorers?

APrivate firms are legally barred from conducting seismic surveys in India

BSeismic data is costly to acquire but cheap to copy, and is worth more to the sector collectively than to any single explorer, so it is systematically under-produced by private incentives

CSeismic surveys generate immediate revenue for the government

DDrilling is prohibited until a complete national survey is finished

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ECONOMYAnalysisHard

Q3. Consider the following statements: 1. India's crude oil import dependence reached a record 88.7 per cent in 2025-26, with domestic output falling to 28 million metric tonnes. 2. The Hydrocarbon Exploration and Licensing Policy of 2016 replaced profit sharing with revenue sharing and introduced a uniform licence for all hydrocarbons. 3. The scheme's projected reserve accretion of over 600 MMTOE represents confirmed discoveries rather than an expected outcome. Which of the statements given above are correct?

A1 and 2 only

B1 only

C2 and 3 only

D1, 2 and 3

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