The board of Oil and Natural Gas Corporation (ONGC) has recently approved Cairn India's revised investment plan for its Rajashtan oilfields. ONGC owns 30% in this field.  

 The Rajasthan block is ready for production and output is expected to begin this month. Cairn’s initial Mangala crude output is seen around 30,000 barrels a day, which will be ramped up to 80,000 barrels by the year-end. Production from the block would plateau at 175,000 barrels a day, or 8.75 million tonnes per year, in 2011.  

   Cairn had revised the total cost for developing the three oil fields (Mangala, Bhagyam and Aishwariya) in Rajasthan to Rs 16,902-17,840 crore, including Rs 4,413 crore for a pipeline to evacuate the crude oil to coastal Gujarat, from Rs 13,756 crore earlier. Cairn is the operator in the three oilfields with a 70 per cent stake, while the rest is owned by ONGC as a licensee. Consequently, Cairn will have to fund 70 per cent of this investment and ONGC, 30 per cent.