The state-owned Oil and Natural Gas Corporation (ONGC) will start the production of crude oil from its flagship deep-water project in Krishna Godavari Basin. The production will help India save nearly Rs 11,000 crore per year. India imports 85 per cent of its crude oil requirements and about half of its natural gas needs.

ONGC also plans a capital expenditure of Rs 1 lakh crore for petrochemical projects by 2028-2030. The investment will be used for two separate projects.

The movement in KG Basin is considered very significant, say top officials of the Ministry of Petroleum and Natural Gas (MPNG). The production from its much-publicised deep sea asset is expected to be a shot in the arm for the explorer and help reverse the low productions bothering the state-owned hydrocarbon behemoth.

The increase in domestic output will also help save outflow of precious foreign exchange on import of crude oil. At current Brent crude price of $77.4, this output alone will save Rs 29 crore every day (at Rs 83.29 to $1) or a staggering Rs10,600 crore on an annual basis.

Initially, oil production from the basin was scheduled to start from November 2021, but the deadline was delayed several times.