Reliance will save 90,000cr per year for India from import.

This is the big news for Indian economy that RIL has started first commercial flow of oil from one of Reliance concessions in the Krishna-Godavari basin. Reliance has said that total oil and gas produced by it in the next 18 months would save some $20 billion (about Rs 90,000 crore) a year in imports, it would also save subsidy by providing a cheap ingredient for making fertilizers.

While Reliance became the first company to produce oil from an auctioned acreage deep under the sea, CEO of the company's exploration and production business, P M S Prasad, said gas from the acreage would commercially flow "not before January 2009". He said the oil from the acreage was of high quality and was being benchmarked to Bonny Light and Tapis crudes that are considered "sweet" and command a premium.

Mukesh Ambani, chairman of the group, said the D6 block is producing 5,000 barrels per day of oil now and will reach a peak of 5,50,000 barrels of oil equivalent per day in 6-8 quarters. "This will account for 40% of the country's current hydrocarbon production," Ambani said.
This discovery will also have a huge impact on the gas pipeline infrastructure in the country. Mukesh Ambani looks at gas distribution networks to drive usage of KG basin gas. So in the next few months, one can expect more action on the city gas distribution front and policy roadmap for gas pricing at market determined prices.
Hope this discovery from Reliance would help country to use saved money from import to utilize in infrastructure development of India.