Cabinet May Clear ₹84,000-Crore Oil Mission: These Stocks Could Be the Biggest Winners

S Jha

2 days ago

Oil price trajectory is predicted to remain elevated until 2032. An offshore ONGC oil station in the Arabian Sea.

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By S, JHA

The proposed National Deep Water Exploration Mission, aimed at strengthening India’s energy security, could trigger fresh investment opportunities across offshore exploration, engineering, shipbuilding and oilfield services if approved by the Union Cabinet.

Mumbai, July 31, 2026 — The Union Cabinet is expected to consider an ₹84,000-crore National Deep Water Exploration Mission, a flagship initiative designed to accelerate offshore oil and gas exploration and reduce India’s dependence on energy imports.

The programme, also known as the Samudra Manthan Project, was announced by Prime Minister Narendra Modi during his Independence Day address on August 15, 2025. If approved, the mission is expected to spur fresh investments in deep-sea exploration, offshore infrastructure and hydrocarbon production over the coming years.

ONGC, Oil India Seen as Primary Beneficiaries

State-run exploration companies are likely to emerge as the biggest beneficiaries.

Oil and Natural Gas Corporation (ONGC) is expected to lead exploration activities in deepwater blocks, making it the most direct beneficiary of higher government spending on offshore exploration.

Oil India Ltd (OIL) could also gain through participation in new exploration projects and joint ventures.

Among private exploration companies, Hindustan Oil Exploration Company (HOEC) may benefit if new offshore acreage is offered under future licensing rounds.

Engineering and Shipbuilding Firms in Focus

The mission could also create substantial opportunities for engineering and infrastructure companies.

Larsen & Toubro (L&T), through its energy and hydrocarbon business, is well positioned to secure offshore platform, subsea engineering and EPC contracts.

Shipbuilders including Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers (GRSE) may benefit if the programme results in orders for offshore support vessels and specialised marine assets.

Oilfield Services, Pipeline Companies Could Gain

Companies providing oilfield services and energy infrastructure may also see increased business.

Among them are:

Deep Industries
Asian Energy Services
Man Industries
Welspun Corp

These firms could benefit from higher demand for drilling services, offshore logistics, pipeline manufacturing and energy infrastructure development.

Long-Term Opportunity

Market participants caution that while the Cabinet announcement could boost investor sentiment in the near term, meaningful earnings growth will depend on actual project execution.

Future gains will hinge on exploration block awards, tender issuance by ONGC and Oil India, EPC contract allocations, and procurement of rigs, offshore vessels and subsea equipment.

If implemented on schedule, the mission could become one of India’s largest offshore energy investment programmes, supporting the government’s strategy to enhance domestic hydrocarbon production and strengthen long-term energy security.

(Disclaimer: This article is only for informational purposes. This is not an investment advice.)