By Sanjeeb Kumar Sahoo
Before I say what Congress leader Shaktisinh Gohil said about the Samudra Manthan scheme at the press conference held at 12:12 p.m. on August 31 at the party’s national office in New Delhi, I would first like to say that Gujarat’s state-owned petroleum company, GSPC, spent nearly Rs 20,000 crore on the KG Basin’s Deen Dayal gas project. However, the promised large-scale commercial gas production failed to materialise. The CAG, in its report, raised serious questions about the project’s risk assessment, technology, reserve estimates, and financial viability.
The CAG report stated: “The audit observed that the trial production from the DDW field commenced in August 2014, but the average production achieved in March 2015 was only 19.45 mmscfd (million standard cubic feet of gas per day) (total targeted commercial production from DDW is 200 mmscfd). Commercial production has not commenced (November 2015) as production rate has not yet stabilised.”
So, where did the Rs 20,000 crore go, and who should be held accountable?
Interestingly, it was a discovery that dwarfed all other discoveries. On June 26, 2005, Narendra Modi, the then Chief Minister of Gujarat, announced that the Gujarat State Petroleum Corporation (GSPC) had discovered “the country’s largest reserve of natural gas in the Krishna-Godavari Basin.”
The then Gujarat Chief Minister had also announced the discovery of 20 trillion cubic feet (tcf) of gas by GSPC in the KG Basin, valued at $50 billion (Rs 2,20,000 crore). He referred to the finding as a “historic moment for India’s hydrocarbon sector.” Christened the Deen Dayal West (DDW) area, the discovery was widely believed to have the potential to reduce India’s import bill.
I would not say that the government did not learn from the past. Rather, I would say that this is a good initiative, as the Narendra Modi-led Cabinet approved the “Samudra Manthan” scheme on July 31, 2026. However, there is a catch, which I will discuss later.
“Samudra Manthan,” the National Offshore Exploration Scheme, is a Central Sector Scheme of the Ministry of Petroleum & Natural Gas, with an approved outlay of Rs 84,084 crore for implementation through FY 2030–31. It is India’s most ambitious offshore exploration mission to date.
This approval marks the culmination of a series of transformative reforms undertaken under the leadership of the Hon’ble Prime Minister to strengthen India’s hydrocarbon exploration and production sector.
The National Offshore Exploration Scheme, “Samudra Manthan,” builds upon these reforms by translating policy into action and opening a new chapter in India’s journey towards energy security and Atmanirbhar Bharat.
India is the world’s third-largest consumer of crude oil, with an annual import bill of nearly USD 144 billion (approximately Rs 13 lakh crore). As recent geopolitical developments have demonstrated, secure and uninterrupted access to energy resources is of strategic importance to a rapidly growing economy.
With India’s energy demand expected to rise steadily in the coming decades, enhancing domestic oil and gas production is essential for reducing import dependence, strengthening energy resilience, and securing the nation’s long-term economic growth.
What did Congress say?
The Congress today demanded scrapping of the ‘Samudra Manthan’ scheme, saying that it has been enacted to benefit the Adani group at the cost of the Oil and Natural Gases Commission.
Addressing a press conference here today, senior party leader and spokesperson, Shakti Singh Gohil disclosed that the Union Cabinet, chaired by Prime Minister has recently approved the Samudra Manthan scheme.
“In the first phase of the scheme itself, a massive outlay of Rs 84,084 crore has been made. The Narendra Modi government has designed a framework in which Adani will be doled out support under the Samudra Manthan Scheme”, he revealed, adding, “under Samudra Manthan” Scheme (the National Offshore Exploration Scheme), Government of India will provide up to 50% financial support”.
He said, the Government has admitted that it has launched this scheme to reduce exploration risk and encourage investment in the hydrocarbon sector. “What it has not clarified is that this scheme has been carved to profit Adani”, he noted adding, “the Samudra Manthan scheme has been devised to singularly benefit Adani Group”.
He said, the Samudra Manthan scheme is to facilitate Gautambhai Adani Well Spun Exploration Limited. He said, Adani holds 65% stake in AWEL which he purchased in 2005. The rest 35% stake is owned by Well Spun Group.
Shakti Singh Gohil said, the Samudra Manthan will spell ‘Amrit Kaal’ for Adani Group. “Under Samudra Manthan scheme, Government of India will bear 50 per cent of cost for every deep sea well drilling, 2D and 3D seismic surveys, artificial intelligence-led reprocessing of existing geological data, development of offshore infrastructure and all related business activities that Adani led AWEL will do”.
He pointed out, oil exploration is an extremely expensive business. On an average, one deep sea well exploration itself costs more than Rs 1100 crores. As AWEL is an unlisted joint venture, detailed standalone financial statements not published. However, disclosure in Adani Enterprises’ FY 2024-25 Annual Report indicate:
Item FY2024-25 Net Assets: – Rs 410 crore. Share of Profit/Loss of -Rs 2.2 crore.
Adani’s AWEL has exploration rights in B 9 cluster, MB-OSN-2005/2 block of Mumbai Offsshore Basin, Tapi Daman and Kutch. AWEL has announced that it will begin major oil and gas exploration in next few months.
So, now Adani’s AWEL will be able begin its business activities which will be funded by government of India. AWEL will have access to use all government resources for oil exploration including a pipeline.
Secure and uninterrupted access to energy resources is of strategic importance for our country. Our country’s energy demand is also expected to rise steadily in the coming decades and enhancing domestic oil and gas production is essential for reducing import dependence, strengthening energy resilience and securing our nation’s long-term economic growth. “But why is the Modi government wanting to de-risk private exploration with public money?” he asked.
Why isn’t ONGC being given the primary role in this national mission? Why is Modi government damaging interests of their own ONGC which already possesses decades of exploration expertise to benefit one private company?
He said,
Under Samudra Manthan
• AWEL will be able to accelerate offshore exploration, including deep water and ultra-deep water acreage with government money.
• This could result in more exploration blocks becoming available through future licensing rounds.
• Government of India will pay for all risks that Adani’s AWEL will take but all profits will be of AWEL only.
• Crores of Indian youth are unemployed, scouting for jobs.
Still, why has Narendra Modi not allocated Rs 84,084 crores for ONGC and announced government jobs within ONGC but has cunningly paved way for Adani?
The Catch of Story
On August 1, 2026, Adani Group Director Pranav Adani welcomed the Union Cabinet’s approval of the Rs 84,084-crore Samudra Manthan scheme for offshore oil and gas exploration in a post on X.
“India’s energy exploration landscape is entering an era of unprecedented scale. Guided by Hon’ble PM Shri @narendramodi ji’s visionary leadership for India’s energy security, the Union Cabinet’s approval of the Samudra Manthan scheme marks a landmark step towards unlocking our vast offshore energy potential. It will accelerate domestic exploration and production, foster greater industry collaboration, and strengthen the foundations of an energy-secure #ViksitBharat 🇮🇳,” said Pranav Adani, Managing Director – Agro and Oil & Gas, Adani Group.
The Adani Group and the Welspun Group formed a joint venture called Adani Welspun Exploration Limited (AWEL) in 2005 to explore and produce oil and natural gas in India.
