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NationalToday's Print Edition

Union cabinet clears ₹3.99 Lakh cr push for farmers, energy security

The News Now News Desk
Last updated: August 1, 2026 12:11 am
The News Now News Desk
Published: August 1, 2026
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New Delhi: In two major decisions aimed at strengthening rural incomes and enhancing India’s long-term energy security, the Union Cabinet on Friday approved the continuation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme for another five years with an outlay of ₹3.15 lakh crore and cleared the ₹84,084-crore ‘Samudra Manthan’ National Offshore Exploration Scheme to accelerate domestic oil and gas exploration.

The decisions were taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.

Briefing reporters after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the PM-KISAN scheme will continue from 2026-27 to 2030-31 with an approved financial outlay of ₹3,15,614 crore.

Launched in February 2019, the flagship scheme provides ₹6,000 annually to eligible landholding farmer families through Direct Benefit Transfer (DBT) in three equal instalments.

The government said the extension reflects its continued commitment to improving farmers’ incomes and strengthening the rural economy.

“The approval reiterates the government’s commitment that the prosperity of farmers forms the foundation of the nation’s prosperity,” an official statement said.

According to official figures, more than ₹4.47 lakh crore has already been transferred directly into farmers’ bank accounts through 23 instalments under the scheme.

Under the latest, 23rd instalment, over 9.49 crore farmers received financial assistance amounting to ₹18,984 crore.

The government also highlighted the scheme’s impact on women farmers, stating that more than ₹1.06 lakh crore has been transferred to women beneficiaries since the programme’s launch, with nearly one in every four beneficiaries being a woman farmer.

Officials said the income support has enabled farmers to make timely investments in seeds, fertilisers, irrigation, farm machinery and other agricultural inputs, thereby improving productivity, reducing dependence on informal credit and enhancing financial stability.

Citing an evaluation by the Development Monitoring and Evaluation Office (DMEO) of NITI Aayog, the government said over 92 per cent of beneficiaries used the funds for agricultural activities, while 85 per cent reported higher farm incomes and reduced dependence on informal borrowing.

The Cabinet also approved the ‘Samudra Manthan’ National Offshore Exploration Scheme, with an outlay of ₹84,084 crore up to 2030-31, to accelerate exploration of offshore oil and natural gas reserves and reduce India’s dependence on imports.

The centrally funded scheme, to be implemented by the Ministry of Petroleum and Natural Gas, is aimed at boosting exploration in deepwater and ultra-deepwater regions, where exploration costs and geological risks remain extremely high.

Under the scheme, the government will provide financial assistance of up to ₹650 crore for every deepwater or ultra-deepwater exploratory well drilled.

More than ₹43,200 crore has been earmarked over the next five years to support deepwater drilling operations, while ₹28,534 crore will be invested in offshore seismic data acquisition.

An additional ₹10,000 crore has been allocated for developing common offshore production and evacuation infrastructure, and ₹2,000 crore has been set aside for establishing oil and gas manufacturing and services hubs.

Officials said drilling a single exploratory well in ultra-deepwater areas, where water depth exceeds 1,500 metres, can cost between ₹950 crore and ₹2,400 crore, with no guarantee of discovering commercially viable reserves.

The government said the initiative is aimed at unlocking India’s offshore hydrocarbon potential and strengthening national energy security at a time when the country’s dependence on imported crude oil has risen to 88 per cent, while nearly half of its natural gas requirements are also met through imports.

Officials noted that recent geopolitical tensions in West Asia had highlighted the vulnerability of import-dependent economies and underscored the need to increase domestic production.

The government expects the programme to help discover more than 600 million tonnes of oil equivalent (MMTOE) of hydrocarbon reserves, boost domestic production, generate employment, strengthen manufacturing and attract fresh investments across the exploration and production sector.

The Cabinet noted that the new offshore exploration programme builds upon a series of reforms introduced over the past decade, including the Hydrocarbon Exploration and Licensing Policy (HELP), the Open Acreage Licensing Policy (OALP) and the Oilfields (Regulation and Development) Amendment Act, 2025, which modernised India’s exploration framework.

The government said the ‘Samudra Manthan’ initiative—first outlined by Prime Minister Narendra Modi in his Independence Day address in 2025—will combine public investment, advanced technology and common infrastructure to unlock India’s offshore energy resources while supporting the country’s goal of achieving greater energy self-reliance.

Together, the two Cabinet decisions represent a nearly ₹4 lakh crore commitment towards strengthening farm incomes and India’s energy security, while promoting sustainable economic growth and reducing external vulnerabilities.

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