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Diversified Agriculture Industry – Biggest Employer in Rajasthan State

Jan 21

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Rajasthan state is a great resource in terms of diversified Agriculture Industry. It produces oilseeds (rapeseed  & mustard), seed spices (coriander, cumin and fenugreek), coarse cereals and bajra which accounts largest  among all other states of India.

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The State is also major producer of soybean, food grains, gram, groundnut and pulses.

Farming Culture in Rajasthan

Rajasthan offers huge potential for organic farming as small and marginal. So it can it can be profitable investment in rajasthan in high tech nursery for fruits, flowers and ornamental plants.

There are mainly two crop seasons. The water for irrigation comes from wells and tanks. One of the major Canal, The Indira Gandhi Canal, irrigates north western Rajasthan.

Major Investors of Agriculture Industry

  • ITC
  • Field Fresh
  • Raj Tech
  • Reliance
  • SAB Miller
  • Cargill
  • Sutlej, Punjab
  • Dabur

Third Largest Cattle Population

Rajasthan has the third largest cattle population in India and boasts of some of the finest breeds of milch and draught cattle breeds. It contributes about 10% of national production of milk, 30% of mutton and over 40% of wool.

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Cairn India Starts Oil Production In Its Mangala Field In Barmer, Rajasthan

Sep 1

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Cairn India has begun oil production from Mangala Oil Fields in Barmer, Rajasthan. It is one of the biggest onshore oil discoveries in India. The first consignment of oil was evacuated by trucking to the Gujarat Coast for onward transport to MRPL, a government nominated buyer using heated crude oil tanker.

Cairn Energy Barmer

Mangala, along-with Bhagyam and Aishwariya, is expected to reach peak production of about 175,000 barrels of oil per day over next few years.

India, Asia’s third-largest oil consumer, currently imports more than 2 million barrels of oil per day, accounting for more than 75 percent of its crude oil requirements. At this point the oil production from the Rajasthan field would account for over 20% of the country’s domestic oil production.

Some Facts  about Oil Fields in Rajasthan

1 – Initial volumes of crude will be produced through the first processing train which has a capacity of 30,000 barrels and production ramp up will continue until all four processing trains, with a total capacity of 205,000 bopd, are built and installed by 2011.

2 – The Rajasthan resource base has continually grown since the discovery of Mangala in 2004 – a total of 25 discoveries have already been made – the focus being to realise the full potential of the Barmer Basin in the coming years.

3 – The total acreage under long term contract is 3,111 km2 spread across the districts of Barmer and Jalore.

4 – 16,000 workers are currently involved in the construction activities -5,000 on the pipeline and 11,000 on the MPT.

5 – Crude production from the Rajasthan fields will generate revenues of Rs. 36,000 crore ($7.6 Billion) in the form of royalties to the State Government of Rajasthan over the life of the project, while the Government of India will earn Rs. 46,000 crore ($9.5 Billion) as profit petroleum, assuming crude oil prices of $50 a barrel.

6 – The world’s longest heated and insulated crude oil pipeline is being built by Cairn from the MPT to the Gujarat coast – length of 670 kilometres – giving access to more than 75% of India’s refining capacity – the first phase is targeted for completion by the end of 2009.

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Rajasthan Budget Announced – Some Good Steps To Promote Travel Tourism in Rajasthan

Jul 9

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Rajasthan Chief Minister Ashok Gehlot announced the state budget in the state legislative assembly yesterday at Jaipur.

Some Highlight of Budget Towards Tourism Sector

VAT  Increased From 12.5% to 14%

The airlines service tax has been substantially reduced from 28% to 4% and VAT has been increased from 12.5% to 14%.

Low Rent for Budget Rooms

There is a great news for budget travelers as the budget exempted room fare in hotels costing up to Rs 3,000 from luxury taxes.

Formation of Rajasthan Tourism Act

To facilitate tourists and bring some regulation in the tourism sector in Rajasthan, Mr Gehlot emphasized on the formation of a Rajasthan Tourism Act, a Heritage Development Council and Heritage Development Authority.

A budget of Rs 10 crore has been allocated for the conservation of  heritage properties in rajasthan.

Nodal Agency to Encourage Investment in Tourism

Among the other announcements were to develop nazool’ properties of tourist importance under a transparent policy. The department of tourism would be a nodal agency to encourage investment in tourism. Besides, old forts, step wells and castles that are the rich legacy of the state would be listed for nomination as the UNESCO World Heritage Sites.

Promotion of  Art and culture and the Folk Traditions

To promote art and culture and the folk traditions there is a proposal to upgrade the Jawahar Kala Kendra as Center for Performance & Living Art for which Rs 1.25 crore has been allocated. Now all accomplished artisans in folk art will be honored with Rajasthan Ratan’.

Restoration of Temples

The budget has been increased from Rs 2 crore to Rs 5 crore for restoration of temples under Devsthan. The museum of Maulana Abul Kalam Azad Arabic Persian research institute would be developed with a grant of Rs 1.19 crore.

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ONGC may exit from Cairn’s Rajasthan Oilfields

May 9

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ONGC Plans to Exit Cairn Gas Fields in Rajasthan

ONGC Plans May Exit Cairn Gas Fields in Rajasthan

Oil and Natural Gas Corp Ltd, India’s largest oil and gas exploration and production company is planning to exit Cairn India’s prolific Rajasthan Oilfields because of Royalty issues.

Why ONGC wants to exit ?

Under the license conditions for the Rajasthan block, ONGC took a 30 per cent stake in the discovery without any cost but has to bear 100 per cent of the royalty, in addition to development costs and cess, which makes it an unviable proposition for the company.

ONGC has to bear 30 per cent of the USD 2.4 billion cost of developing the fields and pay more than three times its share of USD 105 million royalty. Also Cairn wants ONGC to pay even its share of Rs 2,500 per tonne cess levied on crude oil (Rs 15,000 crore annually).

ONGC has written to the Petroleum Ministry seeking reimbursement of royalty that it has to pay on behalf of Cairn India Ltd in the prolific Rajasthan block.

If the request for reimbursement is not considered then it could result in ONGC giving up its 30 per cent stake in the block RJ-ON-90/1. Cairn India, which is the operator of the block, holds 70 per cent stake.

The Rajasthan fields have in-place oil reserves of 3.7 billion barrels, of which, 2 billion barrels lie in the three main fields known as Mangala, Bhagyam and Aishwarya and  Cairn india will reach its peak oil production of 1,75,000 barrels of oil per day (bopd) by 2011. Initial production from the fields would be 30,000 bopd.

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Cairn India to start oil production in Rajasthan from April

Mar 21

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Cairn India is all set to start crude oil production from its prolific oil discovery next month from Barmer Rajasthan. Initial oil production is expected to be around 4,000-5,000 barrels per day and the company plans to dispatch this in tankers to the nearest refinery proposed by the government.

As per the production sharing contract (PSC) between oil ministry and Cairn India, the government has to appoint buyers for the Barmer crude oil before the production starts. Petroleum Ministry has not yet finalized the buyer for the oil, but is confident that things will be in place soon.

Mangalore Refinery and Petrochemicals Ltd, a subsidiary of state-run ONGC, is supposed to be the first buyer for the first oil production of about 30,000 barrels but this too may be difficult as there is no agreement on the selling price.

Estimation of Oil Production in First Phase

The Mangala field in Rajasthan is expected to produce 30,000 barrels of oil per day (bpd) by the second quarter of 2009-10 fiscal. Mangala is the first of the three discoveries made by Cairn and will be first to go on production. As per estimates, production from the field is expected to go up to 80,000 bpd by the end of 2009. In the first half of 2011, the production is expected to peak at 125,000 bpd.

Besides 125,000 bpd of Mangala, the adjacent Bhagyam field would produce 40,000 bpd and Aishwariya another 20,000 bpd. The peak of 175,000 bpd would be reached in 2011.

MPRL Unwilling to take more than 1.02 million tonnes of Crude Oil

While the government-nominated Mangalore Refinery and Petrochemicals Ltd (MPRL) was unwilling to take anything more than 1.02 million tonnes out of the peak output of 8.75 million tonnes, Reliance Industries has placed a demand for 30,000 to 60,000 bpd (1.5-3 million tonnes) of Cairn crude.

Essar Oil has written for 30,000 bpd this year and 120,000 bpd (6 million tonnes) by 2011 when it expands its Vadinar refinery in Jamnagar district.

You can read more on Cairn India Rajasthan Project

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Reliance and Essar wants to Buy Crude Oil from Cairn Energy

Mar 18

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India’s largest private sector oil companies  Reliance Industries Ltd (RIL) and Essar Oil Ltd are keen to buy the entire crude oil output from Cairn India Ltd’s fields in Rajasthan even as the Petroleum Ministry struggles to find takers of the nation’s most prolific oil fields in rajasthan among public sector firms.

The ministry has been able to get state refiners to commit buying only one-third of the 175,000 bpd (barrels per day), or almost 9 million tonnes a year, from the Mangala, Bhagyam and Aishwariya fields in Rajasthan.

Crude Oil Requirement of Major Oil Companies

Reliance wants 30,000 to 60,000 bpd (1.5-3 million tonnes) for each of its two refineries at Jamnagar in Gujarat and Essar is willing to take 30,000 bpd this year and 120,000 bpd (6 million tonnes) by 2011 when it expands its refinery at Vadinar in Gujarat.

Indian Oil Corporation is willing to take 20,000 bpd (one million tonnes) at its Panipat refinery in Haryana and another 0.5 million tonnes at Koyali unit in Gujarat once a delayed coker is installed at the refinery.

Mangalore Refinery, a unit of Oil and Natural Gas Corp (ONGC) which is is the official offtaker of Rajasthan crude, wants only 1.2 million tonnes while Hindustan Petroleum says it can take another 0.5 million tonnes at its Vizag unit.

Why Private Firms are ready to Buy Crude Oil from Cairn Energy?

According to Sources – Cairn was working on a pricing formula. The crude from the onshore Rajasthan block RJ-ON-90/1 is waxy, low in sulphur, and has an API gravity of between 25 and 35 degrees. The company feels the Rajasthan crude could be bench marked to Indonesian grades, which it resembles.

The government had earlier nominated Mangalore Refinery and Petrochemicals Ltd, a refining subsidiary of ONGC, as the buyer of the Rajasthan crude. But MRPL is unwilling to take anything more than 1.2 million tonnes.

Cairn Energy Investment in Rajasthan

Cairn is investing USD 850 million in a processing facility and another USD 800 million in a heated oil pipeline from the fields to the port of Viramgam in Gujarat.

Cairn India, the subsidiary of UK-based Cairn Energy, holds a 70 per cent stake and is the operator of the Rajasthan block. ONGC is its partner with a 30 per cent stake.

Cairn’s Rajasthan project will be a substantial addition to India’s crude oil production, which currently averages around 680,000 bpd.

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Energy Global Cairn’s Ups Investments in Rajasthan – Plans to Invest USD1.8 Billion

Mar 15

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Cairn Indian plans to invest in Jaisalmer, Rajasthan gas fields

Cairn Indian plans to invest in Rajasthan oil fields

Cairn India Ltd, a unit of the U.K. energy explorer Cairn Energy Plc., plans to spend  $1.8 billion in 2010 and 2011 to produce crude oil from its field in Rajasthan.

Cairn India has discovered 25 oil fields in Rajasthan. The largest three oil fields are the Mangala, Bhagyam and Aishwariya fields.

The Company  plans to start producing 30,000 barrels a day from the core Mangala development during the three months to Sept. 30. The first oil will be trucked out and pipeline transportation will start in the fourth quarter, when an additional 50,000 barrels will be produced.

Cairn, along with partner Oil & Natural Gas Corp., plans to increase production at the Mangala and adjacent Bhagyam and Aishwariya fields to 175,000 barrels a day. Cairn is building production capacity of 205,000 barrels a day to process the crude oil it produces.


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Oil and Natural Gas Exploration in Rajasthan

The recent discovery of oil & gas reserves in Rajasthan provides a significant business opportunity to establish a number of upstream and downstream businesses in the state.

At present, the exploration activity in Rajasthan is limited to the following four blocks.

  • Rajasthan Shelf Basin: Jaisalmer and part of Bikaner District
  • Bikaner-Nagaur Basin: Bikaner,Nagaur, Ganganagar and Churu District
  • Vindhyan Basin: Dholpur, Karoli, Baran and parts of Bundi and Sawai Madhopur Districts
  • Barmer-Sanchore Basin: Barmer and Jalore District

Find more about business in Rajasthan

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