Under the ₹84,084-crore Samudra Manthan scheme, the government will pay up to 50 per cent of the cost of risky deepwater exploration wells and expects to be repaid from revenue if a well finds oil or gas, absorbing the loss if it finds nothing. Recovery starts after seven years of commercial production or once the operator has recouped 50 per cent of its costs, whichever comes first. The scheme covers 60 wells, with 56 exploratory wells capped at Rs 675 crore each and four stratigraphic wells capped at Rs 1,350 crore each, and only state-run firms or consortia they lead can apply. Only exploration wells in blocks awarded under the Revenue Sharing Contract regime since 2016 qualify, while development wells and sidetracks are excluded. A second track offers viability gap funding for shared infrastructure that can link stranded discoveries, initially in the Mahanadi basin with token funding for Kutch, and a third track would fund oil and gas manufacturing and services zones.
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Original headline: Samudra Manthan : Govt to bankroll half the cost of deepwater wells , but wants its money back from winners
Read the original on thehindubusinessline.com ↗
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