360° UPSC Mains Analysis

Andaman and Nicobar Islands, India

The regions are subject to a tropical monsoon climate, experiencing severe cyclonic activity in the Bay of Bengal during the post-monsoon season. Geologically, the eastern basins are passive margin basins with thick sedimentary covers, while the Andaman region is a highly active tectonic zone situated near the Sunda subduction trench.

The targeted exploration areas are located along India's eastern continental shelf and the Andaman Sea in the Bay of Bengal. These regions feature deepwater and ultra-deepwater marine environments, transitioning from shallow coastal shelves to steep continental slopes and deep abyssal plains.

These basins hold immense strategic and economic value, containing India's largest untapped deepwater natural gas and oil reserves. Successful commercialization under the Samudra Manthan scheme is projected to reduce India's crude oil import bill by nearly ₹1 lakh crore annually, significantly enhancing national energy security.

The scheme operates under the federal division of powers in the Seventh Schedule of the Constitution. Specifically, it falls under Entry 53 of the Union List (List I), which grants Parliament exclusive legislative competence over the 'Regulation and development of oilfields and mineral oil resources; petroleum and petroleum products'. Consequently, the 'Samudra Manthan' scheme is structured as a Central Sector Scheme, fully funded and executed by the Union Government.

India currently imports approximately 88% of its crude oil and nearly 50% of its natural gas, making its trade balance highly vulnerable to global supply disruptions. By targeting an increase in domestic hydrocarbon resources from 1.6 billion to 2.2 billion tonnes of oil equivalent, the scheme directly aims to substitute imports. This will improve India's overall balance of trade and reduce its vulnerability to geopolitical choke points like the Strait of Hormuz.

The ₹84,084 crore outlay for the 'Samudra Manthan' scheme through FY 2030-31 represents a major supply-side intervention to enhance India's energy security. By targeting a reduction in crude oil imports by nearly ₹1 lakh crore annually, it will significantly narrow the Current Account Deficit (CAD) and preserve foreign exchange reserves. While the front-loaded capital expenditure of ₹84,084 crore will impact the fiscal deficit in the short term, the long-term fiscal position will be strengthened through increased non-tax revenues from royalties and profit petroleum under the Oilfields (Regulation and Development) Act, 1948.

The primary sector (mining and oil extraction) will receive a direct boost through the drilling of 60 deepwater exploration wells and seismic data acquisition worth ₹28,534 crore. The secondary sector (manufacturing) will benefit from the ₹2,000 crore allocation for establishing an integrated Oil and Gas Manufacturing and Services Zone, promoting domestic manufacturing of critical equipment under 'Make in India'. The tertiary sector (services) will experience growth in specialized offshore engineering, digital program management, and geological consultancy services.

The scheme will generate high-skilled employment in offshore drilling, marine engineering, seismic data analysis, and specialized manufacturing within the newly established Oil and Gas Manufacturing and Services Zones. It will strengthen domestic supply chains for critical energy equipment, reducing reliance on foreign-owned drillships and charter vessels. Over the long term, increased domestic energy security will stabilize consumer prices for fuel and cooking gas, protecting household budgets from global energy shocks.

Historically, India's hydrocarbon exploration began in the late 19th century with the discovery of oil in Digboi, Assam, in 1889. Post-independence, the government sought to establish sovereign control over strategic energy resources, leading to the enactment of the Oilfields (Regulation and Development) Act, 1948. The creation of the Oil and Natural Gas Commission in 1956 institutionalized state-led exploration, which culminated in the landmark discovery of the offshore Bombay High field in 1974.

Following the 1991 economic reforms, India transitioned from a state-dominated nomination era to a competitive bidding regime. The New Exploration Licensing Policy (NELP) was approved in 1997 and formally operationalized with the first round of bidding in 1999 to attract private and foreign investment. In 2016, the government replaced NELP with the Hydrocarbon Exploration and Licensing Policy (HELP), introducing a revenue-sharing model and the Open Acreage Licensing Policy (OALP) in 2017 to streamline exploration.

The 'Samudra Manthan' scheme's focus on de-risking high-cost offshore exploration parallels the early state-funded seismic surveys of the 1960s and 1970s, such as those conducted by the Soviet vessel 'Academic Arkhangelsky' which mapped the Gulf of Khambhat and led to the discovery of Bombay High. Similarly, the government's risk-sharing approach mirrors the Pre-NELP exploration rounds of the early 1990s, where the state offered discovered fields to private joint ventures to rapidly monetize resources amid foreign exchange constraints.

The drive for energy self-reliance (Atmanirbharta) in the hydrocarbon sector is deeply rooted in the Swadeshi movement's philosophy of economic nationalism, which advocated for the domestic control and development of India's natural resources to break colonial economic exploitation.

Deepwater and ultra-deepwater drilling in ecologically sensitive basins like Krishna-Godavari, Mahanadi, and the Andaman region poses severe risks of oil spills, underwater noise pollution, and habitat destruction. These activities require rigorous Environmental Impact Assessments (EIA) under the Environment (Protection) Act, 1986 and the EIA Notification, 2006. The Andaman region, in particular, hosts highly sensitive coral reefs and marine biodiversity that face risks from exploratory drilling and seismic surveys.

Deepwater and ultra-deepwater exploration relies on reflection seismology, where high-energy acoustic waves from airguns map subsurface geological formations beneath the seabed. Drilling at extreme depths requires advanced subsea engineering, including dynamic positioning systems for vessels, blowout preventers (BOPs) to withstand immense hydrostatic pressure, and remotely operated vehicles (ROVs) for deep-sea operations.

Expanding fossil fuel extraction directly conflicts with India's commitments under the Paris Agreement and its Nationally Determined Contributions (NDCs) to achieve net-zero emissions by 2070. Unlocking new deepwater hydrocarbon reserves locks in long-term carbon emissions and risks creating stranded assets in a decarbonizing global economy. This expansion also runs counter to the COP28 UAE Consensus calling for a transition away from fossil fuels.

The scheme presents a policy conflict between securing domestic energy access (SDG 7) and achieving climate action (SDG 13) and marine conservation (SDG 14: Life Below Water). While it aims to boost economic growth, a true green economy transition requires shifting capital from high-risk fossil fuel exploration to offshore renewable energy like marine wind and tidal power.

The expansion of offshore drilling directly threatens the daily livelihoods and food security of millions of traditional fishers by restricting access to deep-sea fishing zones and altering marine habitats. Furthermore, any potential oil spills or seismic testing can cause long-term damage to coastal ecosystems, undermining the dignity, health, and economic self-reliance of coastal populations.

The scheme invokes Article 21 of the Constitution of India, which guarantees the Right to Life, interpreted by the Supreme Court to include the right to a clean environment and livelihood (e.g., Olga Tellis v. Bombay Municipal Corporation, 1985). It also relates to Article 48A (DPSP), which mandates the State to protect and improve the environment, and Article 39(b), directing that material resources of the community be distributed to best subserve the common good.

As a District Magistrate, the primary ethical conflict lies in balancing national energy security and economic development (utilizing the ₹84,084 crore outlay to reduce import dependence) against the ecological rights of marine life and the livelihood security of traditional coastal communities. This represents a classic development versus environment dilemma, testing the principles of intergenerational equity and environmental justice.

The scheme directly impacts traditional coastal fishing communities and indigenous tribal populations, particularly in the Andaman and Nicobar region, whose customary fishing grounds and marine ecosystems face disruption from deepwater drilling. Additionally, the socio-economic vulnerability of small-scale fishers is heightened due to potential restrictions in their traditional fishing zones and the risk of localized marine pollution.