Cairn India on Wednesday said it has tied up USD 1.6 billion funds from domestic and overseas lenders to repay old debt and to accelerate the Rajasthan project where crude oil production started a few weeks back.
Cairn India, the company that gave the nation its largest oil discovery in more than two decades, has sold the first crude from its prolific Rajasthan fields to the Mangalore Refinery and Petrochemicals Ltd (MRPL).
The Petroleum Ministry has asked Cairn India to pay a production tax on the oil it has started to produce from its prolific Rajasthan fields even though the contract does not clearly lay the onus of the levy on it.
Prime Minister Manmohan Singh on Saturday inaugurated production from the country`s biggest oil find in more than two decades and said that India offered "a very good" climate for foreign investment in the sector.
Cairn India and its partner Oil
and Natural Gas Corp (ONGC), which will this weekend start oil
production from their prolific Rajasthan fields, will invest
USD 1.5-1.8 billion more in the desert block over the next two
Cairn India, part of the British oil explorer Cairn Energy, will start crude oil production from its Mangla oil fields in Barmer, Rajasthan, from the second week this month, a top official said on Sunday.